You’re still likely to get some tax money back from the state — but there’s disagreement over how and how much.
House and Senate committees have unanimously approved the plans Republicans outlined last week for returning some of Indiana’s record six-billion-dollar surplus to Hoosiers. The House Ways and Means Committee endorsed Holcomb’s plan for a 225-dollar rebate, and threw in an extra 20-million dollars for an assortment of smaller tax breaks: a repeal of the sales tax on diapers, and increases in Indiana’s adoption tax credit and child tax exemption, with an extra boost for babies under one year old.
The Senate bill matches Holcomb’s original billion-dollar price tag, but returns only about a third of that money to taxpayers. The Senate plan freezes gas taxes and utility sales taxes, saving you about 70 bucks. The rest of the proposal is aimed at sopping up hidden red ink, putting another 400-million dollars toward unfunded teacher pension liabilities, and about 200-million in reserve for construction costs. Appropriations Chairman Ryan Mishler (R-Bremen) says soaring inflation has threatened to put some construction projects on hold due to overruns.
“I for one have a problem with giving money back if we can’t pay for what we already put out in projects,” Mishler says.
Markle Senator Travis Holdman says the rebate doesn’t help people who don’t file taxes. House Republicans address that by expanding the rebate to them too. Holcomb’s Office of Management and Budget warns it’ll be costly and time-consuming to figure out who’s eligible.
The bill also caps the sales tax on gas, but budget analysts predict after a month of steadily falling prices, the state won’t hit the cap again.
Senate Democrats supported the plan, after trying and failing to add another billion dollars to help schools with teacher shortages and rising costs.
Both chambers will consider amendments on Thursday before final votes on Friday, then review each other’s bills next week.
2 comments
I still haven’t gotten any money back and we pay state taxes every year!! So where’s our money. ????
These politicians are a joke. People are hurting at more than the pump, just look at food prices. It’s not like all of the stimulus money that was printed out of thin air; this is money paid by the taxpayers that exceeded the amount for the budget. Also, the utilities tax break isn’t going to help a lot of people who rent with utilities included. I’m guessing they make up a large portion of those who could really use some of their tax money back. I’d much rather have my money back to invest than trust politicians to do anything worthwhile with it.