by Scott Drenkard
April 14, 2014
Indiana tax reforms in the past few years have been impressive. In 2011, state senator Brandt Hershman addressed a weak link in the state’s tax code by leading a bill that set the corporate income tax rate on a four-year phasedown from 8.5 percent to 6.5 percent. In 2013, Governor Mike Pence worked with the legislature to maintain these corporate rate cuts while instituting a moderate cut in the state’s already well-structured individual income tax and speeding up the repeal of the state’s inheritance tax. This year, policymakers have continued the Hoosier trend toward better tax laws, as the governor signed a major tax package on March 25 that will improve the state’s business tax climate further. Indiana’s reforms to business personal property taxes are of particular interest, as they could serve as a template for tax reform discussions by policymakers in other states.