Indiana’s State Senate voted 39-10 today (Feb. 23) in support of a proposal crafted by State Sen. Brandt Hershman (R-Lafayette) making Indiana more attractive to new businesses and fostering the creation of private-sector jobs in part by lowering corporate income taxes.
Senate Bill 589 decreases Indiana’s corporate income tax rate by 20% and implements recommendations made by last summer’s Economic Development Study Committee – a bipartisan panel of lawmakers and business leaders who examined ways to improve economic growth statewide.
RV manufacturers and their suppliers are major employers — and taxpayers — in Elkhart County.
Hershman’s SB 589 will now move to the House of Representatives for consideration.
“Indiana’s high corporate tax rate is hurting our efforts to attract jobs to the Hoosier state,” Hershman said in a news release. “Although Indiana’s overall tax structure is very competitive, our corporate tax is one of the highest in the United States, and we have a higher combined federal and state corporate tax than Germany or Japan. This tax reduction primarily affects 16,000 Indiana small to mid-sized businesses.
“Several states across the nation are considering rate cuts and President Obama proposed cutting the federal corporate rate in his State of the Union speech. The bill pays for the tax cuts by reducing or eliminating other tax breaks and is revenue neutral, which means that it does not take away funds for other vital state priorities including K-12 and higher education.”
Hershman said SB 589 also contains other provisions to attract new business and foster job opportunities for Hoosiers:
- Developing educational programs on entrepreneurship for students and members of the workforce.
- Determining specific industries in which Indiana has advantages and should emphasize.
- Finding ways to eliminate or reduce Indiana’s personal property taxes.
- Requiring state and local economic development organizations to collaborate and report results.
- Focusing public universities on turning technology and innovation research into commercial uses.