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Democrats: Indiana Should Choose Wage Increase Over Tax Cuts

By Brandon Smith

Posted January 7, 2015

Indiana Senate Democrats say a budget session is all about prioritizing, and their priority is to help working class Hoosiers.

The top item on the Senate Democrats' agenda is what they call "giving Hoosier families a raise."

Sen. Karen Tallian, D-Portage, says that begins with increasing the state's minimum wage. She notes 29 states have a higher minimum wage than Indiana.

"If you work 40 hours a week, you should not be below the federal poverty level. Indiana has a household income problem," she says.

Democrats will also propose increasing the state's Earned Income Tax Credit, getting rid of textbook fees for public school students, and expanding a mental health pilot program for incarcerated offenders to more counties.

All those proposals would cost state dollars; in some cases quite a lot.

But Minority Leader Tim Lanane, D-Anderson, says that pales in comparison to what the state's ongoing corporate tax cuts cost.

"Yes, you can say, ‘Well, $80 million here, $120 million there, it all adds up.' Well yes, and a billion dollars year after year continues to add up," he says.

Senate President Pro Tem David Long, R-Fort Wayne, opposes an increase to the state's minimum wage, noting Indiana's lower cost of living makes it unnecessary.

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