Messmer Column: Indiana Tax Climate Ranks Top in the Midwest
Local Sources - Indiana State Representative Mark Messmer has issued the following statement on Indiana's Tax Climate
The Tax Foundation, based out of Washington D.C., recently released its 2022 State Business Tax Climate Index, ranking Indiana ninth for its overall tax climate and first in the Midwest.
These standings are based on how Indiana's tax systems are structured. This includes our individual income tax, corporate tax, sales tax, property tax and unemployment tax. Among individual categories, Indiana ranked first in property tax.
Efforts by Statehouse Republicans over the last decade are part of the reason Indiana's tax climate is in a favorable position.
· In 2013, a 5% income tax cut took effect, allowing households to keep more than $250 million of their hard-earned income each year.
· Indiana has also phased down our corporate income tax rate from 7.5% to 4.9% over 10 years. We now have the sixth lowest corporate tax rate in the nation, which ultimately makes us more competitive in attracting employers to hire Hoosiers and invest in our state.
· Until 2013, Indiana was only one of eight states that still levied a death tax. Ending this tax removed a burden that made it harder for farmers or other small business owners to pass their operations on to other family members.
· The General Assembly has passed several measures to end the businesses equipment tax for thousands of small businesses with a targeted exemption that applies to establishments with less than $80,000 in equipment. This small-business exemption was first created in 2015 and has been expanded twice, most recently when we raised the ceiling to $80,000 in 2021.
These improvements have put our state in a great position, allowing us to attract businesses, create more jobs and improve the quality of life for all Hoosiers.
I remain committed to passing laws that are fiscally responsible. I hope to see legislation this coming session that continues improving our tax climate.
As always, feel free to contact my office directly with your questions and concerns by email at [email protected] or by phone at 800-382-9467.