By Senator Brandt Hershman in the Lafayette Journal & Courier:
Over the past few years, Indiana has built a reputation as a state that works. In 2012, we were among the top 10 states for both private-sector job creation and overall economic growth. And though December employment numbers aren’t out yet, 2013 is shaping up to be another top 10 year for job creation in Indiana.
A key factor in Indiana’s performance is our fiscally responsible tax climate. Hoosiers recognize that low taxes can encourage job growth by making our state an attractive place to live for talented entrepreneurs and workers.
To stay ahead of the curve in job creation, Indiana officials must constantly monitor our tax system and ensure we remain an attractive place to do business. That’s why I’m authoring legislation in the Senate this year to reduce two taxes that harm Hoosier employers: the corporate income tax and personal property tax on business equipment.
Many economists report the corporate income tax is the most harmful tax to economic growth. While corporations foot the bill for this tax, its burden is actually paid by workers who earn lower wages, consumers who pay higher prices for goods and services, and shareholders who receive less income from their investments.
My plan, Senate Bill 1, would reduce these negative effects, cutting corporate income taxes by about $130 million a year once fully implemented. This money would decrease state tax revenue, which is operating with a surplus.
Indiana’s corporate income tax rate currently ranks in the middle of the pack nationally, but with the changes I’m proposing, our rate would become the second-lowest in the country. That kind of change will lead more employers to take a close look at Indiana when making location decisions, bringing Indiana to a new level of economic competitiveness.
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See the full article here:
http://www.jconline.com/apps/pbcs.dll/article?AID=2014301240008
