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Indiana Governor Approves Deep Income and Business Tax Cuts | National Policy

INDIANAPOLIS (AP) — Indiana Gov. Eric Holcomb threw his full support behind major state tax cuts on Thursday, saying tax collections were strong enough to overcome his earlier reluctance.

Key elements of the Republican governor’s proposal would reduce Indiana’s current personal income tax rate from 3.23% to 2.9% over an indefinite period. That’s a bigger cut than the 3.0% cut House Republicans are asking for.

Holcomb also approved reductions in property taxes paid on commercial equipment and taxes on utility companies similar to the House GOP plan.

Estimates on the size of Holcomb’s proposal were not immediately released. The House plan is estimated to reduce income tax collections by $500 million a year, with corporate tax cuts worth between $700 million and $850 million a year.

The state has seen a sharp increase in tax collections over the past year, thanks to federal COVID-19 relief funding.

“As our revenues beat forecast month after month, it has become clear that now is the time to act on a tax plan that gives back to our growing business community and hard-working Hoosiers,” Holcomb said. in his press release.

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