Kokomo Tribune; Kokomo, Indiana

Local News

February 7, 2014

Pence affirms desire to end business tax

Levy currently worth $1 billion to local governments

(Continued)

Neither the House bill nor Senate bill totally eliminates the tax that manufacturers and other businesses pay on equipment. But Pence said again that his eventual goal is to match other Midwest states that have repealed taxes like it.

Last week, mayors from the state’s six largest cities met with Pence to press for details on his often-repeated promise to mitigate the local harm caused by his plan. They left without answers, according to those who attended.

“I don’t know any mayor who is saying, ‘Let’s get rid of this tax without replacing the revenue,” said Terre Haute Mayor Duke Bennett, a Republican, who took part in the meeting.

Matt Greller, executive director of the Indiana Association of Cities and Towns, said local leaders are frustrated.

“We have no understanding of what the governor means when he says there will be no ‘undue harm.’ We don’t know if that means $1 or $1 billion,” said Greller.

The Fiscal Policy Institute’s report explains the local officials’ anxiety.

The report found that local governments are still grappling with property tax caps enacted in 2008. Those alone will cause $800 million in lost tax revenue next year — money that would have been used to pay for police, school buses and other public services.

Eliminating the business tax would increases those losses by another $687 million.

The report also notes that property tax caps, now locked into the state Constitution, limit lawmakers’ ability to “re-balance the tax burden among homeowners and business interests.” That means that a reduction in business tax revenue would automatically be shifted to other property owners.

Tax cuts for businesses decrease costs and add to profitability, the report notes, and can encourage companies to relocate or make new investments. But the report also says tax cuts “are most effective where the loss of tax revenue to governments does not reduce public services, especially on highways, police and fire protection, and perhaps education.”

Text Only | Photo Reprints
Local News
  • Illinois man leads police on high-speed chase PERU — An Illinois man driving at speeds of 120 mph led officers from three counties on a high-speed chase Sunday before crashing into a utility pole. Peru police say Isaac K. Hoefling, 31, Lamont, Illinois, was first pulled over by Howard County dep

    July 28, 2014

  • Permanent road closure has Miami Co. residents worried PERU — Residents who live near a safety-flare company that’s expanding north of Peru spoke out against a proposal to permanently close a section of county road that runs through the company’s facilities. Orion Safety Products, located at 3157 N. 500

    July 28, 2014

  • Gary Rhum bringing music lessons to Catholic school Rhum Academy of Music's owner is set to give all students at Sts. Joan of Arc & Patrick School music lessons next year as part of the school's curriculum. When Gary Rhum talks about why he loves to teach kids music, the long-time performer and instru

    July 28, 2014

  • The Annex 01 Move-in date approaching at The Annex of Kokomo A new apartment complex catering to Indiana University students is ready for occupancy. Some students will be able to move into The Annex of Kokomo, located across the street from the IUK campus on Washington Street, as early as Aug. 1, while the maj

    July 28, 2014 6 Photos

  • Commission postpones rezoning vote for Functional Devices land TIPTON — Residents of Prairie Acres subdivision will have to wait at least two more weeks to learn the fate of a pair of zone requests from Functional Devices. At Monday's regularly-scheduled bi-weekly county commissioners meeting, city-county plan d

    July 28, 2014

  • Teachers worry about revamped ISTEP test INDIANAPOLIS (AP) — Indiana teachers heading back to classrooms starting this week are facing the daunting task of preparing students for a standardized test that's been retooled for the third time since 2009. Some teachers and district administrator

    July 28, 2014

  • NWS - KT072514 - Maconaquah celebrates 50 years - CLG Maconaquah alumni return to celebrate school's 50th anniversary Many fond memories were shared recently as 50 years of Maconaquah graduates gathered to celebrate as many years of Maconaquah High School history.But for all the reminiscing that took place, there was an equal amount of well wishes for “the next 50 y

    July 28, 2014 1 Photo

  • Spirits high at Brickyard 400 SPEEDWAY – Despite threatening skies and chances of rain, fans at the Brickyard 400 were not disheartened by the forecast. Brickyard 400 race day dawned with rain and fog, and the sun broke through the clouds at mid-morning. Fans expected the race to

    July 27, 2014

  • NWS - KT072614 - Five Below Grand Opening - pic Five Below opening draws crowds

    Mary Martin is the director of marketing and business development for Markland Mall and, with four grandchildren, she's also a consumer looking for cost-effective deals which still leave her — and the kids — feeling satisfied. Martin was able to purc

    July 27, 2014 1 Photo

  • Mud battle 01 Mud Battle at Oakbrook Church challenges participants

    Challenges are nothing knew to Army Specialist Anthony Walton. An Afghanistan veteran, who was injured in 2011, Walton has endured some of the worst conditions imaginable. While in Afghanistan, Walton was shot more than 30 times in his left arm durin

    July 27, 2014 3 Photos

Latest news
Featured Ads
Only on our website
AP Video
Kerry: Humanitarian Cease-fire Efforts Continue Raw: Corruption Trial Begins for Former Va Gov. The Carbon Trap: US Exports Global Warming UN Security Council Calls for Gaza Cease-fire Traditional African Dishes Teach Healthy Eating 13 Struck by Lightning on Calif. Beach Baseball Hall of Famers Inducted Israel, Hamas Trade Fire Despite Truce in Gaza Italy's Nibali Set to Win First Tour De France Raw: Shipwrecked Concordia Completes Last Voyage Raw: Sea Turtle Hatchlings Emerge From Nest Raw: Massive Dust Storm Covers Phoenix 12-hour Cease-fire in Gaza Fighting Begins Raw: Bolivian Dancers Attempt to Break Record Raw: Israel, Palestine Supporters Rally in US Raw: Air Algerie Flight 5017 Wreckage Virginia Governor Tours Tornado Aftermath Judge Faces Heat Over Offer to Help Migrant Kids Kangaroo Goes Missing in Oklahoma More M17 Bodies Return, Sanctions on Russia Grow
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Obituaries