Taxes could go up in Indiana

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("Personal Income Taxes Ver3" by Chris Potter, CC BY 2.0)

STATE HOUSE–You should be looking for the state to try and make up for some serious budget shortfalls in ways that might involve your money in one way or another. That could mean raising taxes, or perhaps raising some kinds of taxes.

“A three to four billion dollar shortfall over this two-year budget is a pretty big hole to dig ourselves out of,” said Chris Watts, with the Indiana Fiscal Policy Institute, talking to IndyPolitics. He studies the state budget.

Watts said in the federal government lawmakers would authorize the printing of money or would budget regardless of the debt. In Indiana, it’s not possible for lawmakers to do that.

“We have a balanced budget amendment here and can’t just issue debt to cover these things,” said Watts. “So, any shortfall that we run we have to figure out a way to make cuts or raise new revenue to offset that in general.”

Gov. Holcombs has already asked state agencies to curb their budgets by 15 percent. But, some big expenses are coming. Watts points out that because of the pandemic, more people will likely be signing up for Medicaid, which will put even more strain on the budget.

The state has gone from a $2 billion surplus to being two to three billion in the hole in a matter of months. That will affect all government programs, including schools, though those schools have been promised their full money for now.

“I think that there will have to be some serious consideration given to new revenue,” said Watts, when asked if raising taxes would be an option.

He said that lawmakers will likely look for a way to raise some revenue without necessarily raising taxes in general.

“For example, the state cigarette tax, for years now there’s this attitude, well let’s wait until we really have to pull that rip cord,” he said. “well, this is probably that time.”

13 COMMENTS

  1. The state MUST learn to cut back on expenses!! They MUST NOT confiscate any more money from us!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  2. “Watts points out that because of the pandemic, more people will likely be signing up for Medicaid, which will put even more strain on the budget.”

    This is why everyone was so against taking the bait money the Feds offered for medicaid expansion. Indiana is now on the hook for millions if not billions, and it could have been avoided.

    “The first hit is free” is how drug dealers and Federal big government programs operate.

  3. Actual Democrat Eric Holcomb got elected based on the 2+ billion dollar surplus Indiana carries and was proof of how physcally responsible we are as a state. Pence ran as VP based on these same supposed facts. Are they admitting that was all BS now? Surely that money is gone if they are looking to collect more via taxes…Was it even there in the frst place? Liars will say anything at any time as Holcomb has proven time and time again.

    • Lets first start by voting out this governor. I usually vote Repub but it is time for this Gov to go. He is no Mike Pence. When he comes up for election REMEMBER IN NOVEMBER not a fan of the Dems at all but I am willing to make an exception just this once. Be watchful when he comes up for election I dont think it is this year.Gee lets also keep wasting our hard earned tax dollars on public schools too while we are at it. I think it is time for Indiana Repubs to be sent a BIG BIG wake up call. Voters lets start by cleaning house. To Mr. H….. Your idea is a good one but this gov said as long as he is in office he will not consider the idea. He said this on public radio. He would rather tax the crap out of we hard working Indiana peeps.

      • Why should we put money into charter schools when they have ripped the tax payer off for millions of dollars for services they have never done?

          • You should stop using the government to push your morality. That’s what got Republicans in trouble with the moderates for the last few decades, and it’s why the Democrats are such a threat to our freedoms now.

        • To say nothing of the way the government indoctrination system (commonly called the public schools) have ripped off the taxpayers by producing a very inferior product.

      • Dump him in the next primary.

        Given the current shape of the D party, I’d take the worst Republican over the best Democrat any day.

  4. I’m not a big fan of throwing money at our schools after a middle school English teacher told my son that “Spelling wasn’t important because there is spellcheck.” I was very unhappy with the liberal,biased education both my kids received once they left grade school. My children were also exposed to a teacher/coach that was taking pics of young men in the locker rooms. I also attended school board meetings to address the issue of a school board member that had been charged with a sexual crime and refused to resign from the school board. Parents are raped by book fees every year and we are continuously inundated with new tax appeals every time their is an election to give the schools more money. I am all about education for our children/grandchildren,but I think our school systems need a complete overhaul from the ground up. Throwing money at the schools is no answer for what ails the school system. I think Indiana needs to “tighten it’s belt”,not raise taxes for the factory workers or go after smokers as a “cure all.” I seem to recall an attorney general redecorating his offices with chandeliers,etc. I’m a disgruntled Indiana tax payer NOW and I know I’m not alone. Indiana residents need to stand up and say enough is enough!

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