Statehouse — Indiana Senate Republicans want to see if the state can ditch its individual income tax, and one influential economic policy group thinks the change couldn’t come sooner.
But the biggest challenge may be how the state replaces that revenue source.
Individual income tax revenue was nearly 39% of Indiana’s total revenue haul in 2022, according to the Indiana State Budget Agency.
A two-year blue ribbon commission proposed by Sen. Travis Holdman (R-Ossian) would review state and local taxes with the goal of eliminating the individual income tax within the decade.
The interest group said it wanted lawmakers to simplify the tax code and eliminate the state income tax to allow Hoosiers to keep more of their hard-earned money.
Meanwhile, the Indiana Chamber of Commerce says it sees potential in the idea but urged a responsible approach.
The tax brought in $8.1 billion in Fiscal Year 2022.
(Story by WRBI reporter Bill Remeika)