(Statehouse) January 25, 2007 - Today, State Representative Eric A. Gutwein (Rensselaer) voted for House Bill 1027 Minority Committee Report, a measure that would have eliminated the Indiana Death Tax. The Report was debated on the floor of the House of Representatives, yet failed by a 48-51 vote.
"We had a chance to completely eliminate the state death tax," State Rep. Gutwein. "Unfortunately, the House Democrats failed to see the need and significance of our report. As a result, beneficiaries will continue to pay the state of Indiana for their inheritance."
Class A beneficiaries include the lineal ancestors and descendants, such as grandparents, parents, children, step-children, and grandchildren. If it had passed the House, the Committee Report would have phased-out the Death Tax over the next five years. In 2008, the initiative aimed to raise Class A exemptions to $200,000, then raising the exemption again in 2009 to $300,000. Beginning in 2010, Class A beneficiaries would have been exempt from the tax. By 2012, every beneficiary would have been exempt, effectively eliminating the Death Tax.
"Indiana is one of only 13 states in the nation that still has this tax and we had developend a reasonable and conscientious way to eliminate this double-taxation," stated Rep. Gutwein. "The 2007 legislative session still has time for my colleagues across the aisle to realize that the current policy is not reasonable. I hope that we can cooperate and come to an agreement that is fair to the citizens of Indiana."