Indiana lawmakers near deal on multiyear income tax cut
INDIANAPOLIS (AP) — Indiana lawmakers were in final negotiations Tuesday on a plan that a top Republican says would include an individual income tax cut phased in over several years.
Republican House Speaker Todd Huston says the proposal would cut the state’s current income tax rate of 3.23% to 2.9% in four steps until 2029 but not include some business tax cuts that face resistance from GOP senators.
House Republicans had pushed the tax cut plan as Indiana saw big jumps in tax collections over the past year fueled by federal COVID-19 relief funding.
The governor’s office estimates the income tax cut proposal would reduce state revenue by $900 million a year when fully implemented.