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Holcomb weighs potential tax cuts in 2022 or 2023 legislative sessions

holcomb

(Brandon Smith/IPB News)

Gov. Eric Holcomb said discussions are well underway to potentially cut taxes in the upcoming legislative session.

Holcomb also suggested those tax cuts might wait until 2023, when lawmakers write a new state budget.

Indiana has enjoyed record revenues and surpluses in recent years. And those higher-than-usual revenues have prompted lawmakers to debate cutting taxes.

Holcomb noted that outsized budget reserves mean Hoosiers are getting a taxpayer refund, in the form of a credit, when they file next year.

“And we just, by the way, cut corporate income tax on July 1 down to 4.9 [percent],” Holcomb said.

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The governor acknowledged the current revenue surge is also undoubtedly influenced by a significant influx of federal stimulus dollars.

“But we do know that the economy is growing across multiple sectors," Holcomb said. "The revenue is coming in.”

Holcomb said a factor in the tax cut debate will be trying to gauge when economic growth naturally slows and how cutting taxes will affect future revenues.

Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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