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House Republican tax cut bill easily clears committee, heads to House floor

Rep. Tim Brown (R-Crawfordsville) is the author of the House Republican tax cut package. (Brandon Smith/IPB News)

A major tax cut package that will eventually cost the state $1 billion a year easily cleared a House committee Wednesday.

Republicans also rejected every proposed change to the bill from Democrats.

The measure, HB 1002, includes a mix of business tax cuts, eliminates certain taxes on utility ratepayers and lowers the state’s individual income tax over the next few years down to 3 percent.

Business groups lined up in support, including the Indiana Manufacturers Association.

“These multi-state companies – where are they going to spend their dollars, moving forward?" said Andrew Berger, IMA senior vice president. "If we can drive down the cost of that investment in Indiana, that’s what’s going to keep that investment, those jobs, here in Indiana and growing.”

Local government advocates worry about a loss of revenue in the future.

READ MORE: Indiana House Republicans proposed $1 billion in tax cuts

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Rep. Ed DeLaney (D-Indianapolis) said the bill hurts state government.

"Those tax cuts reduce my ability to invest. That's the choice we're making," DeLaney said. "This proposal moves the ability to invest away from the state."

Democrats’ rejected proposals for the bill included increasing the renter’s deduction and the earned income tax credit, a sales tax exemption for feminine hygiene products and diapers, and a child care tax credit.

Rep. Cherrish Pryor (D-Indianapolis) said Republicans are ignoring Hoosiers who need the most help.

“The more money that we’re putting in the pockets of people who are low income, that money immediately goes back into the economy,” Pryor said.

The bill now heads to the House floor.

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

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