INDIANAPOLIS – Start with the facts. In Indiana, the elimination of the inheritance tax, and reductions in the personal and corporate income taxes signed into law in 2013 have failed to jumpstart wage growth.
Fact: Since the 2013 tax cuts were enacted, Indiana has trailed the national average in average income growth.
Fact: Since the 2013 tax cuts were enacted, Indiana has trailed neighboring states in average income growth.
Fact: Under the 2013 tax cuts, the average Hoosier household saw their tax bill fall by $54. The wealthiest 1% saw their taxes decrease by $1,555.
Fact: Indiana’s 2016 real median household income ranked 36th nationally, the same as in 2015, and was more than $5,000 lower than the national average.
Fact: Indiana has one of the most regressive tax structures in the nation.
Conclusion: In Indiana, tax cuts have failed to grow Hoosiers’ paychecks quicker, period.
According to Speaker Brian Bosma, by 2023, tax cuts will put $2 billion back into the coffers of businesses. The Speaker implied those savings were being plowed back into workforce development yet Hoosiers’ educational attainment is ranked near the bottom nationally and has been for more than a decade.
Fact: In 2015, Indiana ranked 40th in the country in percentage of residents 25 to 64 with an Associate degree or higher.
Fact: In 2012, Indiana ranked 41st in the country in percentage of residents 25 to 64 with an Associate degree or higher.
Fact: In 2005, Indiana ranked 42nd in the country in percentage of residents 25 to 64 with an Associate degree or higher.
Fact: Indiana spends less per pupil, after adjusting for inflation, than it did in 2009.
Conclusion: Skilled workers earn higher wages. Statehouse Republicans claim they’re still funding “priorities” and “investing more” into workforce development and education. The number of Hoosiers’ with an Associate degree or beyond has barely improved for more than a decade and is well below the national average.
Indiana Democratic Party Chairman John Zody questioned pundits actively peddling the Indiana approach as a national model to grow Americans’ incomes.
“Follow the facts. Tax cuts haven’t led to bigger paychecks for working Hoosiers,” said Zody. “If President Trump and DC Republicans’ idea of tax reform is slowergrowing wages, then Indiana’s approach is a model. Any other promise is nothing more than a trickle-down fantasy.”