Maintaining Fiscal Responsibility

Maintaining Fiscal Responsibility

Tuesday, April 30, 2024

Senate Republicans work hard to maintain fiscal responsibility, allowing us to cut taxes and keep more money in the pockets of hardworking Hoosier taxpayers.

Indiana is in the middle of a staggered income-tax cut that will save Hoosiers almost $300 million in 2024 and $2 billion over the first five years. This is because Senate Republicans supported a law in 2022 that began the process of annually reducing Indiana's income-tax rate. Thanks to another law Senate Republicans supported in 2023, the rate cut was accelerated and is now set to be 2.9% in 2027 instead of 2029.

In recent years, Senate Republicans have supported and passed several other laws to maintain fiscal responsibility.

  • By doubling the small-business personal property-tax exemption, an additional $18 million is being provided in annual tax relief for 30,000 small business across the state.
  • To support new parents, Senate Republicans doubled the income-tax deduction parents can claim for a new child and eliminated the sales tax on diapers.
  • To support Hoosier families and expand access to necessary education resources, Senate Republicans eliminated fees on textbooks.
  • By eliminating the utility receipts tax, Hoosiers' energy bills have been reduced by over $200 million per year.
  • Senate Republicans consistently work to aggressively pay down Indiana's largest pension fund. Since 2021, this liability has been reduced by almost $5 billion and the state is on course to have it completely paid off years ahead of schedule.
  • The income tax for military pay has been eliminated with hopes to encourage more Hoosiers to enlist in the Armed Forces and make Indiana an even more attractive state for those who serve.
  • This year the General Assembly established a process to transfer unused state dedicated funds to the General Fund, ensuring Hoosiers' tax dollars are used efficiently.
  • At a time of skyrocketing home values, Senate Republicans provided Hoosier homeowners with over $100 million temporary property-tax relief for 2024.

Fiscally conservative leadership has allowed Indiana to lower income-tax rates and maintain one of the lowest property-tax rates in the nation.

On top of all of these achievements, Senate Republicans were also proud to return $1.5 billion into taxpayers through two Automatic Taxpayer Refunds triggered by our state’s strong financial position.

Hoosiers deserve to feel confident in our state's fiscal standing, which is why Senate Republicans are continuing to look for ways to improve Indiana's tax system and keep more money in taxpayer's pockets through the State and Local Tax Review Task Force.