Niki Kelly, writing for the Fort Wayne Journal Gazette, has an article on the Senate’s consideration of HB 1001 which makes some pretty significant tax changes. In particular, it raises the sales tax from 6% to 7% in order to reduce property taxes. One of the House provisions that is being received with particular skepticism in the Senate is an increase in the Earned Income Tax Credit, which provides tax reductions and wage supplements for low-and moderate-income Hoosiers.
Kenley and members of the Senate committee believe the EITC should be considered in a future session. Advocates for low and moderate income Hoosiers say it’s necessary because the increase in the sales tax disproportionately impacts lower income Hoosiers.
Here is where it becomes evident that we’re dealing with tax restructuring and not tax “reform.” Whether it’s “reform” or something else depends on where you’re sitting. The taxes are shifting from one taxpayer to another. According to one study, a family of 4 making $20,600 will pay an additional $157 in sales tax. Under the House version they would save $121 with the EITC. There is also a proposed renters deduction that would apparently save them an additional $85 if they rent.
I do realize that it has been passed through the house so talking with you is kinda pointless but I am trying to just voice my opinion to as many politicians as possible… I am a probationary firefighter here in Anderson, IN. with almost a year on… I just had a baby girl with my girlfriend of over 8 years who currently is not working due to her being in college prior to the baby and now with us having our little girl… but anyway like any other 22 year old just starting out with a career and a family I have acquired quite a bit of debt in the last year with the purchase of a new house, car, and various card and student loans debt… with all this I am doing ok with my salary as a firefighter but now all we are hearing is how this hb1001 is going to be cutting over 4million dollars from our budget, which comes down to me more than likely after our current contract runs out, not having a job… I went through a 4 month academy that was pretty much a boot camp that took my blood, sweat, and tears to get through, and to see that all be taken away because people think that this one bill is gonna solve the property tax plans just kills me… i’m only 22 but i know that when one tax is cut another one raises… but people aren’t gonna see that now since they are so enraged about their property taxes, nor are they gonna see the hurt its gonna do to the fire departments, police departments, and education of cities like Anderson… I just wanna be able to raise my daughter with the best possible care I can just as i was raised here in Anderson and continue to be on the fire department here just as my father was for 30 years and loved every second of it and not once had to worry about loosing his job…
Mr. Leever,
Congrats on the new child!! Fellow Andersonian who works for the city, who shoulders your concerns. Would like to share coffee, and ideas sometime. Yes, budget cuts are coming, but I do not see those comimg “directly” from public service. Operating costs, and overhead are the first normally to go, however, nothing goes as usual especially in Anderson IN as you know!
Good luck, Det. Larry