STATEHOUSE—As Vice-Chair of the House Ways and Means Committee, State Rep. Suzanne Crouch (R-Evansville) participated in hearing testimony on a bill to repeal the inheritance tax. “People should not be punished for achieving success,” said Rep. Crouch. “An individual’s hard-earned wealth should not be taken by the government after their death. It’s a decision that each person needs to make on their own and with their families.” House Bill (HB) 1199 would gradually phase out the inheritance tax over the next 10 years. Individuals paying the inheritance tax would receive a tax credit, with the credit growing each year until 2023 when the tax would no longer be collected. In 2013, the credit would cover 9 percent of the collected amount, increasing by nine to 10 percent each year thereafter. This would benefit taxpayers while allowing the state time to find alternative revenue. Indiana is one of only eight states that have a ‘death tax’, because of this, many people leave the state to avoid this unfair collection. It is particularly hard on small businesses which create three-fourths of all new jobs. The National Federation of Independent Business polled 14,000 members in Indiana and found that over 90 percent opposed the death tax. Farmers face a unique challenge with the ‘death tax’ because they require more capital—such as land and machinery—to generate income. Families that inherit farming operations may be forced to sell off land or farm equipment to pay for the death tax. “Repeal of the death tax is common sense,” said Rep. Crouch. “The death tax, or inheritance tax, represents double taxation because the money in the estate has already been taxed. When coping with the death of a loved one, families should not have to worry about an exorbitant, unnecessary tax.” -30- |
