Indiana – Indiana’s task force is embarking on an comprehensive analysis of the state’s tax structure.
This comprehensive assessment will delve into pivotal areas such as the state’s existing debt, pensions overseen by the state, and its projected financial standing.
The methodology for this assessment encompasses a meticulous examination of specific categories of taxes, including the Sales Tax, Income Tax, and Corporate Tax. The ultimate objective is to furnish actionable insights for consideration by the 2025 Legislature. Integral to this assessment is a slated discussion in October regarding the potential discontinuation of the state’s individual income tax.
Even though Indiana currently enjoys a robust financial health, there’s an anticipation of variances in revenue inflow. One projection indicates a potential decline in sales tax earnings, possibly amounting to a reduction of up to $500 million for the fiscal year 2024. Concurrently, the task force is also evaluating the state’s individual income tax, which consistently generates close to $8 billion annually.