corporate tax

October State Revenues Continue Downward Trend

Nov 13, 2017

Total Indiana tax revenues have lagged in each of the four months of the fiscal year that began in July. And October didn’t help, with collections missing the mark by nearly $30 million.

That’s despite sales and individual income taxes which exceeded expectations for the first time this fiscal year – though just barely. And despite that positive month, collections for those two tax categories remain less than expected overall.

Stakeholders in Indiana are already weighing the GOP tax plan’s potential effect on workers.

Indiana Manufacturers Association lobbyist Andrew Berger says the plan’s most important pillar is its 20 percent corporate tax rate. He says it’ll let businesses make decisions about growing and investing based on what really matters.

“Not, ‘how do I best effectuate my tax liability?’” he says. “That’s what we’re trying to get out of this investment decision-making process.”

Indiana tax revenues fell further behind expectations as the state finished the first quarter of its fiscal year.

The first two months of the fiscal year put the state more than $40 million below expectations. September made it more than twice as bad.

Total tax collections last month were more than $66 million less than projected, which puts the state $107 million off the mark for the fiscal year.

Sales, corporate, and individual income taxes all missed their targets in September. Corporate and sales taxes haven’t yet met expectations at any point this fiscal year.

Indiana’s business community is waiting to see how federal tax reform plans, set for release next week, might impact their companies and workers.

At a roundtable in Indianapolis on Thursday, business leaders said they want to communicate to their workers and the public that lowering America’s corporate tax rate will be good for more than just executive paychecks.

Toyota Motor Manufacturing of Indiana

 

Growth in Indiana's manufacturing industry is slowing down, thanks to over-regulation and a lack of skilled workers.

That's the message from businesses that weighed in for a big annual survey on the health of the Hoosier manufacturing sector.

It's prepared by Indianapolis accounting firm Katz, Sapper & Miller, working with researchers at Indiana University, the Indiana Manufacturers' Association and Conexus Indiana.

 

Scott Pelath / Indiana House Democrats

House Democrats say the closing of Carrier plants in Indianapolis and Huntington shows Republicans have gotten the economy wrong.

Minority Leader Scott Pelath (D-Michigan City) argues the move of 2,100 to Mexico proves Republican initiatives, from right-to-work to corporate tax cuts to the repeal of the common construction wage, haven't worked.

“We continue to have very low economic growth,” Pelath says. “We continue to have negligible, if not negative, wage growth and we don’t see any real improvements here.”