Thanks to many years of fiscally conservative leadership, Indiana is in an extremely fortunate economic position. With state revenues continuing to outpace expectations, the General Assembly recently passed tax cuts for Hoosiers.
House Enrolled Act 1002 phases down Indiana’s income-tax rate to 2.9%, tied for the lowest rate in the nation, and could save Hoosier taxpayers up to $1 billion once fully implemented. This phased-in tax reduction is contingent on state revenue continuing to grow, ensuring we are still practicing the fiscal responsibility that got us here.
Hoosiers will also benefit from HEA 1002 repealing Indiana’s utility receipt tax, which will help combat rising utility costs. HEA 1002 requires utility companies to reduce their rates and pass the savings from this tax cut on to their customers.
Lastly, this legislation pays down pension debt in order to keep our promises to retired Hoosier teachers.
These tax cuts come on top of the automatic taxpayer refund that was triggered at the end of the fiscal year 2021, meaning not only will Hoosiers have taxes reduced going forward, but they will also receive a tax credit of about $125 after filing this year.
I take great pride in the fact that Indiana can simultaneously return money to taxpayers, cut taxes and pay down debt, and I will continue to prioritize fiscally responsible policies like these during my time as your state senator.
