Republicans aren't always knee-jerk tax cutters. Indiana Commerce Secretary Mitch Roob wants to cut our corporate income tax rate to 6.5 percent, saying the rate of 8.5 percent is among the top third in the nation and some companies won't even consider us because of it. But critics say such a cut would increase investment by only 2 or 3 percent, which wouldn't get close to replacing the funds lost. House Wayns and Means Committee Chairman Jeff Espich, R-Uniondale, puts it this way:
The proponents say that we're now the 10th best tax climate for business in the nation and this would make us 9th best. That doesn't seem like a big deal to me to lose $80 million a year," he said.
That's the real question: How onerous is our rate considering the overall tax climate here and how we compare with other states? Espich's approach seems like a sensible one.
