It’s decision time for Holcomb

Tax cut nearly certain, but fate of gun permit, trans sports bills is hazy

A plan endorsed by Gov. Eric Holcomb to gradually cut Indiana’s individual income tax rate over the next decade will soon be at his desk after winning approval in the final hour of this year’s legislative session.

While Holcomb is nearly certain to sign the tax cut package into law, he has sidestepped giving his stance on contentious bills approved by the Republican-dominated Legislature to repeal the state’s permit requirement to carry a handgun in public and banning transgender females from participating in girls school sports.

The Republican governor has already signed a bill for ending the state’s nearly two-year-long COVID-19 public health emergency declaration after lawmakers turned down a push aimed at forcing businesses to give broad exemptions from workplace vaccination requirements.

Here’s a look at some top issues from the legislative session that saw several splits among Republicans before it ended early Wednesday:

Trimming taxes

The tax cut plan calls for reducing the state’s current income tax rate of 3.23% to 2.9% in small steps until its planned full implementation in 2029, but it doesn’t include some sizable business tax cuts that House Republicans sought.

The plan would cut the tax rate to 3.15% for 2023, which would amount to $40 in savings for those with $50,000 in taxable income. Further reductions in 2025, 2027 and 2029 would only occur if state tax revenue grows by at least 2% in the previous budget year.

Holcomb and Senate Republican leaders for months resisted backing significant tax cuts, citing concerns about inflation and a possible slowdown in the state’s booming tax collections with the end of federal COVID-19 relief funding.

But that hesitancy faded away in the last couple weeks, with Holcomb saying ongoing strong tax revenue made him confident the state could afford the tax cuts.

“Because we can, we should,” Holcomb said.