INDIANAPOLIS, Ind. (WOWO): A Senate Republican Caucus priority bill authored by State Sen. Travis Holdman (R-Markle) that would create a commission to study the elimination of Indiana’s individual income tax has passed the Senate Committee on Tax and Fiscal Policy unanimously.
Senate Bill 3 would form the State and Local Tax Review Commission to study the feasibility of ending Indiana’s individual income tax and reforming property taxes for Hoosiers. Currently seven states are without an income tax. In a release Holdman described restructuring Indiana’s tax system as a Senate Priority.
Each year, Indiana has a standard payment of about $1 billion to the Pre-1996 Teachers’ Retirement Fund. Once this pension plan no longer has an unfunded liability, Indiana will have freed up at least $2 billion in the state’s biennial budget.
In 2011, the estimated payoff date for the pension fund was beyond 2060, but with recent targeted and aggressive additional contributions, Indiana is now looking at 2029.
