Porter: Indiana’s regressive tax policies harm the everyday Hoosier, state Republicans hoping to add to the problem

Today, members of the State and Local Tax Review Task Force heard from Neva Butkus, State Policy Analyst at the Institute of Taxation and Economic Policy. Butkus, whose presentation was requested by State Rep. Gregory W. Porter (D-Indianapolis), reported to the task force that Indiana's current tax policy is “regressive” and requires low and middle-income Hoosiers to pay more taxes than the wealthiest 20% of Indiana residents.

Butkus also pointed out that the current Republican proposal to rid Indiana of the state income tax would not only further harm the most economically vulnerable Hoosiers but would also require the state to increase Indiana's sale tax rate to increase to make up for lost revenue.

Porter issued the following statement at the conclusion of Butkus' Zoom presentation:

“It is abundantly clear that Indiana needs a balanced tax structure that looks out for the little guy, and that's not what we have right now. To make matters worse, Indiana Republicans are fighting to make our tax system even more unequal by advocating to get rid of the state income tax. We've already been told by two former Republican lawmakers that this proposal is not sustainable, and Ms. Butkus' presentation today showed us clearly that this proposal would force lower-income Hoosiers to pay more in taxes and give the wealthy yet another tax cut.

“If we truly want Indiana to be a state where everyone has an opportunity to prosper, we have to find a tax structure that doesn't help the rich get richer and the poor to pay more than their fair share. According to the Massachusetts Institute of Technology, a single person household in Indiana needs to make roughly $31,560 a year to earn what is considered a living wage. Over 20% of Hoosier families make less than that, but still pay the most in both total state and local taxes, as well as the highest rates of sales and excise taxes. It is unconscionable that Republicans are vying to eliminate a tax that will benefit the wealthy while ignoring the glaring disparities in our current structure.

“I'd like to thank Ms. Butkus and the Institute of Taxation and Economic Policy for sharing their findings with the tax force and urge my Republican colleagues to do right by the majority of Hoosiers by working with Democrats to find a tax system that works for everyone, not just the top 1%.”