STATEHOUSE (March 10, 2022) – State Rep. Jim Lucas (R-Seymour) recently voted in support of passing the largest tax cut in the state's history, sending the $1 billion tax-relief package to the governor where it could soon become law.
According to Lucas, House Enrolled Act 1002, which he co-authored, will drop the state's individual income tax from 3.23% to 2.9% over seven years. He said once fully phased in, Indiana would have one of the lowest income tax rates in the nation.
"Unlike our federal government, which is over $28 trillion in debt, Indiana is committed to fiscal responsibility, including funding essential services, investing in our future and paying down our debt," Lucas said. "Instead of growing government programs and spending, we chose to return money to hardworking Hoosiers through passing the largest tax cut in state history – saving taxpayers over $1 billion. I'll continue to look for ways to cut red tape, reduce government and ensure state government works for Hoosiers – not the other way around."
The bill will also help lower utility bills for Hoosiers and businesses by eliminating the 1.46% Utility Receipts Tax currently paid on electricity, natural gas, water, steam, sewage and telephone bills.
Lucas said once both tax cuts are fully implemented, Hoosiers would save over $1 billion a year.
He said the legislation includes using reserves to make a one-time, $2.5 billion payment toward pre-'96 teacher pension obligations. This comes after Indiana has paid down well over $1 billion in debt over the last year alone.
House Enrolled Act 1002, a priority for Republican lawmakers, comes as the state's budget reserves are expected to hit a record $5 billion at the end of fiscal year 2022. As revenues continue to outpace expectations, Hoosier taxpayers can expect a $125 refund this spring as part of a combined refund of over $545 million. A new law supported by Lucas will ensure the maximum number of Hoosiers qualify for the refund.
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State Rep. Jim Lucas (R-Seymour) represents House District 69, which includes
portions of Bartholomew, Jackson, Jennings and Jefferson counties.
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PHOTO CAPTION: State Rep. Jim Lucas (R-Seymour) (right) discusses legislation with State Rep. Sean Eberhart (R-Shelbyville) (left) on Tuesday, March 8, 2022, in the House Chamber at the Indiana Statehouse. Lucas recently voted in support of passing the largest tax cut in the state's history.
