Political Posturing

I thought you might like to read what my friend and legislative colleague, Greg Porter, has to say about some of the political posturing going on up at the Statehouse in the wake of a 2013 legislation that I have had to characterize as one of “squandered opportunities:”

Don’t believe Republican tax cut talk: their “tax cuts” are phantom

INDIANAPOLIS – State Rep. Greg Porter (D-Indianapolis), ranking Democrat on the Indiana House Ways & Means Committee, today issued the following statement responding to Republican claims about the “tax cuts” enacted during the 2013 session of the Indiana General Assembly:

“People have come to expect overheated rhetoric about legislative accomplishments, but the Republican claims that this past session saw the largest tax cuts in Indiana history simply are not passing any sort of sniff test. I know that sounds nice and juicy and large and makes for good headlines, but these are phantom tax cuts that offer little relief where it is needed the most.

“Let us examine some of the ‘work’ that has been done:

“Hoosiers will see their state income tax rate cut from 3.4 to 3.3 percent, effective January 1, 2015. Not now, not next year, but the year after that. Then they will have to wait another two years—January 1, 2017, to be exact—before seeing it cut from 3.3 to 3.23 percent.

“What will that cut mean for the average Hoosier, who makes about $50,000 a year? In two years, it will mean about a buck a week. Two years after that, another buck a week in savings.

“And that, for all the talk about these cuts, is what most Hoosiers are going to see from this legislative ‘windfall.’

“Most of us will see nothing from the elimination of the inheritance tax, unless we have relatives die. Most of us don’t own corporations and financial institutions, so we won’t benefit from reductions in taxes affecting those areas.

“If we are to be honest as well, we might as well admit that some of these tax cuts—inheritance, for example—already have been in effect for a few years now.

“In 2012, we began the process of phasing out the inheritance tax over a nine-year period. That we decided to speed it up doesn’t mean we already weren’t heading down the road. We just aren’t being completely honest about how many will benefit from its elimination.

“Cutting taxes has been a bipartisan tradition for quite a few years now.

“In 1997, when Democrats controlled the House, we cut property and income taxes. In 1999, when Democrats controlled the House, we cut property taxes again. In 2002, when Democrats controlled the House, we repealed the corporate gross income tax and cut property taxes again. In 2004, when Democrats controlled the House, we began the process of phasing out the inventory tax. In 2007, when Democrats controlled the House, we cut property taxes again. In 2008, when Democrats controlled the House, we enacted the largest property tax cut in history.

“I would argue any or all of these cuts were as substantial as those passed this year.”

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As always, please contact me if you have any questions, comments or concerns related to our state government. Here is how you can stay in touch: call my office toll-free at 1-800-382-9842; write to me in care of the Indiana House of Representatives, 200 W. Washington St., Indianapolis, IN 46204; or email me at h77@iga.in.gov.