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Corporate Tax Rate to Fall 2%

By Dan Goldblatt

Posted April 22, 2011

Corporate tax rates would fall 2% under a bill passed by the Indiana House Thursday.

The legislation gradually lowers the corporate tax rate in Indiana from 8.5% to 6.5% over a four year period beginning in 2012. Bill sponsor Eric Turner says the bill will bring jobs to the state.

"Sending a message," he says, "that we are open for business to corporations who want to start here, expand here, relocate here is a strong message and I think that this will help the future of jobs in Indiana."

But Michigan City Representative Scott Pelath says the tax cut would have a reverse Robin Hood effect of sorts.

"But the fact of the matter is," he says, "when you make a cut from 8.5% to 6.5%, you're going to get less money. And it's going to go into the pockets of people who don't need it at the expense of people who do need it."

The bill now moves to the Senate for confirmation.

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