13 WTHR IndianapolisIndiana's inheritance tax on chopping block

Indiana's inheritance tax on chopping block

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INDIANAPOLIS -

Indiana legislators are looking to phase out or scale back the state's inheritance tax and using anticipated money from online sales tax collections and growth in other revenues to offset the loss.

Those who want to get rid of the inheritance tax say it is prompting some wealthy people to move from Indiana to states like Florida that don't have such taxes.

The Indiana House and Senate have approved separate proposals. One plan would phase the tax out completely over 10 years. The other scales it back over five years by increasing the amounts exempted from taxes and cutting the tax rate in half.

Critics say eliminating the tax is a risky move for the state without a guaranteed way of replacing that money in the state budget.

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