Friday, November 8, 2019
Recently, the Tax Foundation released its 2020 Business Tax Climate Index, which ranks Indiana’s tax climate No. 1 in the Midwest and No. 10 in the nation.
Thanks to pro-growth, conservative tax policy by the General Assembly for years, Indiana continues to be recognized for its strong business environment, including the policies highlighted below:
• Individual Income Tax Reduction (2013): Every working Hoosier has benefited from a 5% income tax cut that took full effect in 2017.
• Corporate Income Tax Reduction (2011 and 2014): Indiana is in the middle of a multi-year phasedown of our corporate income tax rate from 7.5% to 4.9%. When fully phased in in 2021, Indiana will have the fourth-lowest rate in the nation, making us more competitive in attracting employers to hire Hoosiers and invest in our state.
• Property Tax Caps (added to the state constitution in 2010): Constitutionally protected caps on property tax rates make it easier to achieve the American dream of owning your own home and guarantee a predictable low-tax environment for employers doing business in Indiana.
• Business Personal Property Tax Exemption (2014 and 2019): Indiana has provided an exemption for small businesses on the business equipment tax since 2014. In 2019 that exemption was doubled. Now businesses with $40,000 or less in equipment are exempt from the tax.
• Inheritance Tax Elimination (2013): Until 2013, Indiana was one of only eight states that still levied a death tax. Ending this tax removed a burden that made it harder for farmers and other small-business owners to pass on their operations to their family members.
Our caucus will continue to support legislation that support’s the growth of our state’s economy and ensures a place to live, work, raise a family and start a business.
