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.”

Porter disappointed in SALTR report, says changes are handouts to big businesses

Today (Nov. 20),  the State and Local Tax Review Task Force (SALTR) voted on their final report and recommendations. The report includes eliminating the 30% personal property tax floor and the implementation of cuts to the local income tax, which will result in $1 billion in lost revenue by 2030. 

State Rep. Gregory W. Porter (D-Indianapolis) released the following statement: 

“This report is a nothingburger that provides no solution to rising property tax rates. In fact, Republicans will give big businesses even more handouts by changing the de minimis business personal property tax and the 30% floor on depreciable personal property. The state will lose $289 million in revenue, which will shift the burden to the very homeowners we’re trying to help. 

“By cutting the amount we receive from businesses, we’re putting more burden on property taxes to make up the difference. Local schools, EMS services and other entities will need the funding from somewhere, and it will be out of working-class families already emptied pockets. 

“This task force was established to create more effective controls for property taxes and help working Hoosiers afford their bills so they could stay in their homes. I believe these recommendations will do the opposite. I simply cannot square the circle on the disparate property tax provisions in this report. 

“A couple of the task force’s thoughts on the Local Income Tax (LIT) are well-informed. It’s prudent public policy to use GIS data for LIT distributions and to allow cities to adopt their own LIT. As for the idea of reducing the overall LIT cap to match the state income tax, I'll reserve my judgment for a later date.

”I’m disappointed in this report which provides very little relief to hard-working Hoosiers. We can do better for our homeowners, and we should do better.”