Indiana lawmakers talk a tax cut plan

Indianapolis – Indiana lawmakers are negotiating a tax cut plan during the final days of the legislative session.

House Republicans have pushed for tax cuts and are now looking to bring back their proposal, which includes reducing the state’s income tax and tax cuts for some businesses.

The House-passed version of House Bill 1002 has the support of many members of the business community.

“This is a vital issue for the types of businesses that the Senate and the House are trying to attract to Indiana,” said Doug Hass of Kimball Electronics, which is based in Jasper.

Gov. Eric Holcomb wants to reduce the income tax from 3.23% to 2.9%. He also wants to eliminate the utility receipts tax and the 30% business personal property tax floor on new equipment.

“I think the priority needs to be taking care of our liabilities, paying down the pension liability,” said State Sen. Ryan Mishler (R-Bremen).

Meanwhile, Democrats want to take a different path compared to the House Republicans’ plan.

State Rep. Greg Porter (D-Indianapolis) wants to cut the state’s sales tax by at least 0.5%.

“This tax reduction will really help working families,” Porter said.

State Sen. Tim Lanane (D-Anderson) is calling on lawmakers to suspend the state’s gas tax, amid the recent surge in gas prices.

“We know people are being hit hard in the pocketbook and they’re going to continue for apparently the near future,” Lanane said.

Before it can head to the floors of the House and Senate for a final vote the bill needs approval by the conference committee.