Porter comments on Braun’s misguided tax proposal

State Rep. Gregory W. Porter (D-Indianapolis) released the following statement regarding Gov.-elect Mike Braun’s tax plan: 

“It’s clear that Braun’s tax plan was designed to provide further benefits to wealthy Hoosiers. I haven’t seen any legislative proposals, but I’m highly concerned with the plan’s contents. My major concern is the two-year state income tax credit for those bumped into higher tax brackets due to inflation, the so-called ‘Bidenflation Relief Tax Credit.’

“Braun believes federal taxes are slamming Hoosiers, and we can soften the impact with Indiana’s tax code. Frankly, this idea is misguided and fiscally unsound. In 2022, we addressed a federal change by tying state and federal fiscal tax policy together. We’re still experiencing inconsistent revenue flows from that decision. 

“It’s a dangerous game to link these two systems together. We’re comparing apples to oranges. Indiana has a flat tax rate. Everybody is taxed at 3.05% whereas the federal percentage changes based on your income level. 

“Besides, addressing inflation isn't a novel idea. Most of Hoosier’s federal taxes are already calculated with inflation in mind thanks to the 1981 Economic Recovery Tax Act (ERTA). It’s passive income streams for higher tax brackets, like stock investments, where there will be real benefits. The better option is to make the state-earned income tax credit more reflective of the federal amount. This would benefit lower to moderate-income taxpayers who don’t have passive incomes.  

“The bottom line is this proposal will divert our limited state income tax revenue to the wealthiest taxpayers. Middle- and working-class families will get no relief. Indiana’s human infrastructure needs, like childcare and K-12 public funding, will be even more strapped for cash. We should shelve this proposal from further consideration and create something that truly helps the average Hoosier.”