looking at property tax abolition
From Tuesday's C-J:
The Commission on State Tax and Finance met on Monday to discuss the prospective elimination of property-- and ways in which the same revenue might be replaced by other (higher) taxes.
Diane Powers, director of the fiscal and management office within the Legislative Services Agency, provided estimates of higher sales and income taxes needed to compensate for trashing property taxes. Her estimates:
Eric Miller, founder of the Indiana-based conservative lobbying group Advance America, also testified yesterday. He offered his own plan, one he's been selling across the state. (Mr. Miller will also speak at a forum in New Albany tomorrow.)
His proposal includes raising the sales tax by 2 percentage points, increasing the income tax by 1 percentage point, creating or increasing a business tax that he has not detailed, and capping state and local spending. Miller said that combination -- particularly a reduction in spending growth -- would eventually be enough to replace the property tax.
Legislative fiscal leaders, though, are skeptical about Miller's plan. They balked yesterday at some of his data, questioned the ability of government to reduce growth to the levels he proposed, and raised concerns about the proposal's long-term viability.