Strangely, there is little opposition to eliminating taxes on the equipment (personal property) of Indiana's businesses. The question is how to replace the $1 billion in revenues lost by Indiana's counties, cities, towns, school corporations and libraries. That's significant money for police, fire and other public services.
Gov. Mike Pence and his allies are scrambling to find a replacement for those lost revenues. Raise the state's sales tax? No one favors that. Allow local governments to impose a sales tax? Never! That would be anarchy, chaotic competition among neighbors.
Thus far, the most favored idea allows communities to raise one of the local option income taxes. State politicians like this because local office holders will be blamed for the higher taxes.
Who benefits from a better-prepared work force? Mainly, it's those companies installing new equipment that seek better-prepared workers. Thus, under the principle of beneficiary taxation, businesses should pay for the updating of the existing work force and the education of the future work force.
What about a statewide personal property tax, with a single rate? Currently that rate varies from one jurisdiction to another. Additionally, the state, not the locality, assesses the value of that equipment.
Further, the billion dollars raised from the tax could be earmarked for vocational education at all levels, in all its many forms from accounting to zoology.
This means changing education, which everyone seems eager to do.
We have spent decades believing more education will bring monetary rewards to the individual. More education was once a route to becoming a more articulate, cultured and engaged citizen. Today, more education has become an investment from which there should be a monetary return.
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http://www.southbendtribune.com/news/business/there-are-benefits-to-business-taxes/article_04614a3a-75f7-11e3-ad3d-001a4bcf6878.html
