Thursday, March 17, 2022
Indiana is in a very fortunate economic position thanks to years of fiscally conservative leadership. With state revenues continuing to outpace expectations, the General Assembly recently passed tax cuts for Hoosiers.
House Enrolled Act 1002 phases down Indiana's income-tax rate to 2.9%, tied for the lowest rate in the nation, and could save Hoosier taxpayers up to $1 billion once fully implemented. This phased-in reduction is contingent on state revenue continuing to grow, ensuring we are still practicing the fiscal responsibility that got us here.
HEA 1002 will also repeal Indiana's utility receipt tax, which will help combat rising utility costs, and requires utility companies to reduce their rates and pass the savings from this tax cut onto their customers.
Lastly, this legislation pays down pension debt in order to keep our promises to retired Hoosier teachers.
In 2021, the automatic taxpayer refund was triggered, which also means Hoosiers will not only have taxes reduced moving forward, but will also receive a tax credit of $125 after filing this year.
It is a great accomplishment that Indiana can simultaneously return money to taxpayers, cut taxes and pay down state debt. Senate Republicans will continue to prioritize fiscally responsible policies during future legislative sessions.
For more information about HEA 1002 and other bills that passed this session, click here.
