Plan to cut business equipment tax draws debate
Members of an Indiana House committee still are divided over cutting the state's business equipment tax after nearly three hours of discussion.
The House Ways and Means Committee heard testimony Monday on a Senate proposal to cut the tax for small businesses. A separate House plan would give counties the option to cut the business tax only on new equipment.
Both plans address Gov. Mike Pence's proposal to cut the tax entirely in an effort to boost the state economy and attract more jobs. Local governments and schools now draw $1 billion in revenue from the tax.
Whether cutting the tax will draw more businesses to the state is unclear. A report released last week shows little evidence that the tax affects companies' decisions to relocate to Indiana.
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