Senate approves lower corporate taxes, enhances state economy

FROM IDS REPORTS

Last week state Senate Republicans passed Bill No. 589, which would lower corporate income tax by 20 percent, in an effort to attract businesses to Indiana.

The bill was authored by Sen. Brandt Hershman, R-Lafayette, and it passed the Senate with a vote of 39-10. It was subsequently referred to the Indiana House of Representatives.

“It (the bill) is the result of a very intense summer study committee ... which consisted of four legislators — equally balanced between Democrats and Republicans,” Sen.
Hershman said.

Business and community leaders from around the state joined the committee to discuss economic development policies.

“We took a look at not only Indiana’s current tax climate and economic development practices but also practices around the nation and the world,” Sen. Hershman said. “We came up with a fairly comprehensive set of recommendations that would improve Indiana’s business climate and make our state the best destination of choice for business growth and current business expansion.”

The recommendations included instilling entrepreneurship education in school curriculums and state programs acknowledging the importance of arts and cultural activities. But research revealed Indiana as an outlier when it came to tax rates.

“We have one of the highest corporate business taxes in America and when taken in combination with the federal tax rate, one of the highest in the world,” Sen. Sherman said.

—Vince Zito