Indiana Business Tax Cuts
The Indiana Senate has passed a large group of business tax cuts by a vote of 36 – 12 on March 13, 2014. The corporate income tax and state banking tax will be reduced to 4.9 percent leaving local governments the decision to slash the business equipment tax. Republicans feel that the cuts are pertinent to compete with other states seeking new businesses whereas the opposing Democrats are weary and believe that these cuts will interfere with education and road repair budgets. Governor Mike Pence wanted an ejection of the state’s tax on business equipment. Other local leaders argued that by cutting the tax it would be detrimental as the tax provides revenue to other critical budgets.