INDIANAPOLIS (AP) — Indiana's corporate income tax rate would be cut by
nearly 25 percent over the next four years under a plan the Indiana House
The House voted 62-34 Thursday for the bill to incrementally reduce the
corporate tax rate from the current 8.5 percent to 6.5 percent in 2015.
Bill supporters say Indiana's current rate is among the nation's highest and
argue that it discourages businesses from coming to the state. Democrats
argued it's not right to help the very richest in society as others suffer
from state budget cuts.
The full tax cut is estimated to cost the state about $80 million a year.
Legislators expect to make up that revenue by starting to tax the interest
on out-of-state bonds held by Indiana companies and residents.