Financial Security Scorecard: Indiana 31st In Nation

March 3, 2014
By
A financial scorecard finds that more than 44 percent of Indiana households don't have enough savings to cover emergencies. Photo credit: file.

A financial scorecard finds that more than 44 percent of Indiana households don’t have enough savings to cover emergencies. Photo credit: file.

INDIANAPOLIS – Indiana is in the middle of the pack when it comes to the overall financial well-being of its residents, according to a recent state-by-state analysis. But while the 2014 Assets and Opportunity Scorecard ranked Indiana 31st among the states for financial security, it also found more than 44 percent of Hoosiers are liquid-asset-poor, meaning they have little or no savings to cover emergencies.

According to a professor of economics at Indiana University Southeast, Eric Schansberg, Indiana is one of several states that impose income taxes on the working poor, and that’s hurting those who have trouble making ends meet.

“If you’re struggling to make it and your income is at the poverty line, I think one could reasonably argue that you shouldn’t be paying taxes to the state; you need all the money you can just to get by,” he declared.

The scorecard ranked Indiana 17th for policies that help struggling families.

One notable policy measure the report finds in Indiana is a state Earned Income Tax Credit. While the report recommends the state credit should be at least 15 percent of the federal credit and Indiana’s is 9 percent, Schansberg said it still helps.

“The Earned Income Tax Credit can offset some of the amazing damage that FICA taxes do to the working poor,” he said. “If you’re at the poverty line you lose about $3000 per year to FICA taxes and no one seems to talk about that.”

FICA refers to the taxes that fund Social Security and Medicare.

Schansberg said the scorecard does a good job of tallying the complex factors influencing poverty, and adds that those factors should be taken into consideration as state leaders make policy decisions.

“You start with education and health care and the Earned Income Tax Credit, and so anything that makes a substantive difference, from skills and education to the way we treat people once they get in the labor market, all of those would be big steps forward for Indiana,” he said.

Across the country in general, the report found a continuing decline in economic mobility and widening wealth and income inequality.

The scorecard is at http://assetsandopportunity.org./

Listen Live

Upcoming Events

Dec
31
Wed
12:00 am 2015 Batesville Youth Baseball/S...
2015 Batesville Youth Baseball/S...
Dec 31 @ 12:00 am – Mar 14 @ 12:00 am
Registration is open online 24/7 go to www.batesvillebaberuth.com and click on the “Register Now” link. Early registration Discount $5.00 per registration if completed IN JANUARY The spring/summer season will run from April 25th through July 2nd. All games will be through the week excluding April 25th to avoid conflict with spring soccer You can also register in person at the Batesville firehouse. Registration days: January 31, 2015- 9:00 to noon February 21, 2015- 9:00 to noon March 7, 2015- 9:00 to noon  
Jan
1
Thu
1:51 pm Patriotic Art Contest
Patriotic Art Contest
Jan 1 @ 1:51 pm – Mar 31 @ 11:59 pm
The Ladies Auxiliary of VFW Post 3183 is sponsoring an art contest for students in grades 9-12. The contest is a great way to earn money for college. The art must be on paper or canvas and have a patriotic theme. Digital Art is not accepted. The art must be original. Judging is based on originality, presentation, and patriotism expressed. There are monetary awards given locally and at the state level. The national winners will receive scholarships. Home schooled students are eligible, foreign exchange are not. Your entry must be signed by a teacher. You can obtain an entry form by calling Kay Pulskamp, chairperson at 934-3442. Please submit your art by March 31, 2015. The first place winner will be sent to the State Scholarships Chairman for judging. Your art will be returned to you after judging is complete. Additional info/rules may be reviewed at www.ladiesauxvfw.org/programs/scholarships.html
Jan
23
Fri
12:00 am Spring Soccer Registration
Spring Soccer Registration
Jan 23 @ 12:00 am – Feb 14 @ 12:00 am
Batesville Soccer Club is offering youth spring recreational soccer for the first time. Registration is now open at the Batesville Soccer Club at http://www.batesvillesoccer.org/Default.aspx?tabid=494080 Registration will be open until February 14th and the games will start in mid April through mid May

View Calendar