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Question from GOP Governor’s Debate: Should Indiana fully eliminate state income tax?

GOP Governor’s Debate: Should Indiana fully eliminate the state income tax?

INDIANAPOLIS (WISH) — Five Republican candidates hoping for the job of Indiana governor debated live for 90 minutes Wednesday night from the historic Madam Walker Legacy Center on WISH-TV.

The five invited candidates were Mike Braun, Brad Chambers, Suzanne Crouch, Eric Doden, and Curtis Hill.

News 8 asked the candidates: Should Indiana fully eliminate the state income tax?

Crouch was the only candidate who believes the state income tax should be eliminated. She says it can be done by limiting government growth, ending wasteful government spending, and finding efficiencies in running the government. She notes other states are growing by eliminating their income taxes.

“I’m the only one on this stage that has the political courage to eliminate the tax,” Crouch said. “It’s not going to happen overnight. It has to be phased in. We have to have triggers in place to protect against economic downturns.”

Hill says $8 billion is collected in state income tax, and axing the tax is impractical unless a plan exists. Chambers says lower taxes should be sought with a plan, but Indiana already draws attention for development without eliminating taxes. Hill says he’d move the gas tax back to pre-2018 levels.

Chambers says low taxes are what Indiana should strive for. He believes Indiana is competitive on its taxes compared to other states. He says Indiana should avoid eliminating taxes that support education, police pay, health care, child care and other services. He’d rather grow Indiana’s economy and put more money in people’s pockets. “When you look at taxation, you can’t just look at one tax, you have to look at the whole array of taxes.” He says tax changes would need a plan in advance. He says Tennessee, Florida and other states without income taxes have higher property taxes.

Doden says state lawmakers are studying the idea of changing taxes, and he would cap property taxes for “seniors on fixed incomes” and seek a way to lower taxes through the Legislature. He says axing the income tax would be 40% of the state budget, and he only sees the elimination of Indiana’s income tax as “a gimmick.”

Braun says Crouch would not be “axing the tax” since she says it would be gradual. He says he has experience that the next governor needs to evaluate its agencies to cut their spending. Braun says the increased gas tax was a good investment in infrastructure that helped the economy.