A tax cut plan proposed by Republicans at Indiana House this week would cost the state more than $ 1 billion in revenue per year over the next three years.
The biggest chunk would come from a reduction of about 7% in the state’s personal income tax. This reduction, which would occur gradually over the next several years, would ultimately reduce state revenues by more than $ 500 million per year.
There are also two different tax cuts for businesses on their commercial equipment and an elimination of some utility taxes.
READ MORE: House Democrats push to spend state surplus to help Hoosiers
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The House GOP’s tax cut push, contained in HB 1002, comes amid record budget surpluses. But Republicans in the Senate and the governor have expressed caution over such large cuts this year.
They worry about future budgetary needs and the sustainability of the current large state revenues.