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Indiana Legislature passes business tax cuts
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INDIANAPOLIS (AP) - A broad package of business tax cuts is on its way to the governor’s desk.
The corporate income tax and state banking tax would be reduced to 4.9 percent and local governments would be left to decide whether to cut the business equipment tax. The Senate and the House both voted along party lines Thursday in favor of the plan.
Bill author Sen. Brandt Hershman said the cuts are crucial to competing with other states seeking new businesses. But Democrats opposing the cuts said that lawmakers will have to come back next year and begin cutting critical services such as education and roads.
Gov. Mike Pence originally sought the elimination of the state’s tax on business equipment, but local leaders opposed the measure because the tax provides critical revenues.
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