Indiana House Passes Death Tax Elimination Bill
FOR IMMEDIATE RELEASE: Tuesday, February 28, 2012
Americans for Prosperity Indiana Cheers Legislation to Abolish the State Inheritance Tax
Indianapolis Yesterday, the Indiana House overwhelmingly supported a bill to eliminate Indiana’s inheritance tax. Indiana is currently one of 22 states that impose an estate or inheritance tax (i.e., death tax) on its residents. By passing SB 293, which phases out the tax over ten years, the General Assembly will encourage small business job creation, according to research cited by Americans for Prosperity Indiana.
The Indiana House today took a stand for small businesses and sound tax policy, said Chase Downham, state director of Americans for Prosperity Indiana. Repealing the state inheritance tax will encourage job creation and stop punishing Hoosier families and businesses.
A 2007 study by the Connecticut Department of Revenue found that states without an estate tax produced twice as many new jobs and their economies grew nearly 50 percent more from 2004-2007 than the states with such taxes. Indiana has one of the lowest thresholds for state death taxes, imposing the tax on any bequest in excess of $100,000.
Ending this bad tax will make Indiana more competitive and discourage our small businesses from re-locating to Ohio and Michigan, Downham added.
Michigan imposes no death tax and Ohio passed legislation last year to repeal its estate tax, which goes into effect in 2013. Over 27,000 wealthy former Connecticut residents moved to Florida (which imposes no estate or inheritance tax), at least partly to avoid the state estate tax, according to the previously mentioned study.
It is now up to the State Senate and Governor Daniels to finish the job and repeal Indianas death tax, Downham concluded.
SB 293 was authored by Senators Brandt Hershman and Jim Smith and introduced in the House by Representative Eric Turner. The Senate is expected to vote on the bill in the coming days.