Next State Budget Delivers Wins For Hoosier Taxpayers

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Next State Budget Delivers Wins For Hoosier Taxpayers

MAY 18, 2023

STATE REPRESENTATIVE TIM O’BRIEN (R)

During this year’s legislative session, lawmakers passed a responsibly balanced state budget to fund state government over the next two years. Thanks to hardworking Hoosiers and a booming business climate, Indiana’s economic engine continues to run strong giving budget writers a tremendous opportunity to deliver big wins for Hoosier taxpayers.

As a member of the Ways and Means Committee, which is responsible for crafting the budget, I know firsthand that fiscal responsibility took priority as we protected our savings, paid down our state’s already low debt, invested in the future and returned money to Hoosiers. Recently signed into law by Gov. Eric Holcomb, the budget is expected to save taxpayers more than $430 million over the next two years through various tax relief measures.

Given the state’s strong financial outlook, we’re going to speed up the planned income tax cuts, which will drop Indiana’s tax rate to 2.9 percent – one of the lowest rates in the nation – by 2027.

We also provided tax relief to our active-duty military. Currently, active-duty service members are eligible for a $5,000 state income tax deduction. Beginning next year, they will receive a complete income tax exemption regardless of their deployment status. It’s great to know that Indiana will join other neighboring states in offering a full exemption, which could make it easier to attract service members and their families to live and work in Indiana.

To help Hoosier parents, I worked hard to support the elimination of student textbook and curricular fees this session, and moving forward families won’t be on the hook for these expenses. Indiana was one of only seven states that still allows schools to charge for these materials.

I routinely hear from constituents and employers alike about the lack of accessible and affordable child care, which has a negative effect on families, especially those who are low-income, and the economy. To help expand child care options, I supported a new tax credit for employers who provide these services to their employees by opening their own facility. The credit would pay for half of expenses. I’m also committed to continuing to work on this critical issue as we move forward.

5 COMMENTS

  1. Work on exempting Social Security from State Tax. Elderly on fixed incomes need some help. This year my wife and I paid no Fed Tax but was taxed $430 by the State of Indiana all due to the Tax on our SS. Thank you.

    • It was something else you paid tax on. Social Security is exempt in Indiana or your return wasn’t filed properly.

  2. We saw our property taxes go up 500% this year. YIKES! I see the governor will be one of the highest paid in the country, while our state ranks 22nd. So wrong! Yet no extra money for a 13th check for retired teachers. Seniors live on a fixed income, why not lower or stop the state tax on social security? Other states lowered the gas tax, ours went up, was was it 36 cents?

    • All i read is how great Indiana has done so much for Us. Well Yay! The Gov.” Giveth and The Gov. Taketh away. You need to help us, not put us further into the poor house. Look around not just at the rich,

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