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Indiana House Republicans propose $1 billion in tax cuts

By Brandon Smith

Posted January 5, 2022

Indiana House Republicans have proposed a mix of tax cuts on levies imposed on businesses, utilities and individuals. (Brandon Smith/IPB News)

A proposed tax cut package introduced by Indiana House Republicans this week would cost the state more than $1 billion a year in revenue within the next three years.

The largest chunk would be from a roughly 7 percent cut in the state’s individual income tax. That reduction, which would happen gradually over the next few years, would eventually lower state revenues by more than $500 million a year.

There are also two different tax cuts for businesses on their business equipment and an elimination of certain utility taxes.

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The House GOP’s tax cut push, contained in HB 1002, comes amid record budget surpluses. But both Senate Republicans and the governor have expressed caution about such large cuts this year.

They’re worried about future budget needs and the sustainability of the current large state revenue amounts.

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