[A]bout $1.6 billion in property taxes would be shifted to state sales and income taxes, which he said would have to be increased by 1 percentage point each: The income tax would grow from 3.4 percent to 4.4 percent, and the sales tax from 6 percent to 7 percent.
Another $300 million would come from increased business taxes, and $400 million in local expenses would be transferred to the state. Orentlicher said the state could cover that amount with its surplus and money from casino licensing fees.
Orentlicher's plan would definitely provide immediate and much-needed tax relief to property owners. The problem with the plan is that it has been tried in the past without long-term success. By merely shifting taxes to the income and sales tax without permanently limiting future property tax increases, the net result is that new government spending will eventually be fueled by future property tax growth. It's the nature of the beast.
9 comments:
I agree.
With this plan, not only would they get a higher income tax increase, then also in the future they can raise property taxes again.
Just more of the same stupid ideas.
Orentlicher was on TV when this mess came about. At that time he said he was for limits. What happened? We need hard limits on property taxes. % caps with assessed value do not work, values can just go up.
I give David credit for trying.
But history, specifically Gov. Bowen's stupid plan in 1973, should've been a better teacher.
We need a permnent fix. I'm waiting on the Kernan-Shepherd Commission's findings. And hoping.
In spite of the fact that many, many people talk to David O. at the protests and tell him they want nothing but property tax REPEAL, he ignores their wishes.
Economist Dr. Bill Styring gives the answer and he says the only answer IS repeal and the total elimination of property tax.
Dr. Styring's video which outlines the only workable solution is available at:
www.HoosiersForFairTaxation.com
Well, Melyssa, I've seen the video, and read much of Dr. Styring's work over the last ten years.
Pardon me if I don't jump on board.
The word "eocnomist" in front of his name does not give him instant credibility. Far from it.
I want a full repeal, but not at his pace or using all of his ideas.
You expect any legislator to adopt your philosophy on taxes, 100%, and introduce legislation? David introduced a bill. It'll get debated and altered.
I suggest you take a short walk over and talk to Sen. Lubbers, who, frankly, has bene more a part of the problem on taxes and education than most folks realize.
Then get back to me.
The word "economist" is not what gives him credibility, but rather his accomplishments that do. Just like the word "politician" carries no credibility.
I know about Sen. Lubbers. I agree with you.
However, no one that I've seen presents a better more workable solution than Dr. Styring. I don't see other governments bringing our politicians over to help them set up their currency and economic unions either.
As long as property tax exists, our property is in danger.
Ideally, we need the Fair Tax on a federal level. I have no doubt we will get there. And I have no doubt we will get property tax repealed in Indiana. It is what hoosiers want.
You mentioned you were not "on board", but did not mention what you see as the problem with Dr. Styring's solution. I promise you I'll get your concerns addressed.
Dr. Styring's conclusions ignore one basic ecnomic fact, that neocons refuse to admit: this ecnomy, and over time it happens often, is in recession.
Often, during such times, sales taxes wane. Big ticket items sell less often, herego, the state budget, if it depended more heavily on sales taxes, could be caught unprepared.
And make no mistake about it, without the $12 bil a month war expenditures, this economy would be in full-blown recession.
Another fact that's hard to avoid: if our sales taxes exceed thos eof neighboring states by much, big-ticket items, even in good times, will be bought in neighboring states for the 2 million Hoosiers within 35 minutes of a border.
There are ways to capture the appropriate state's sales tax, if all states agree to do so...but it's a sticky wicket.
Dr. Styring has been an economist for hire for quite some time. His past works include a few that had faulty conclusions.
Frankly, it's a problem with many economists of all political stripes. They're part-time politicians of a sort.
No more band aids please, time to FIX it.
6:13, it isn't thiat easy, but you're right, it IS time to fix it.
I have some hope that the Kernan-Shepherd Commission will do that. If the legislature follows through with their recommendations, we might see some sweeping change,.
They're discussing one county-wide assessor (doing away with all township offices), as well as other stable taxes to replace the prop. tax.
I e-mailed Gov. Kernan witih some thoughts, and he repsonded within 24 hours.
I think all the commission members are tkaing this very seriously.
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