Senate Fiscal and Tax Policy Committee Chairman Travis Holdman (R-Markle) said he wants to create a high-level tax commission, with the ultimate goal of elimination of income tax in five to seven years.  - Brandon Smith/IPB News

Senate Fiscal and Tax Policy Committee Chairman Travis Holdman (R-Markle) said he wants to create a high-level tax commission, with the ultimate goal of elimination of income tax in five to seven years.

Brandon Smith / IPB News

Indiana Senate Republicans want the state to take a comprehensive look at its tax system – with an eye toward eliminating the income tax by the end of the decade.

Caucus leaders propose creating a high-level tax commission.

Senate Taxation and Fiscal Policy Committee Chairman Travis Holdman (R-Markle) said he wants a two-year investigation into the state’s entire tax system.

“If we had the opportunity to start over with all of the economic and demographic changes that have occurred in the state of Indiana and our workforce, how would we do things differently than what we’ve done before and continue to do so? ?” Holdman said.



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Holdman said part of that goal is to eliminate the income tax within five to seven years.

Ball State economist Michael Hicks says that’s not necessarily a valid argument. If you look at the tax rate alone, he said, it has not been successful in attracting economic activity.

Hicks said policymakers must look at taxes as the price you pay for public services.

“The quality of public services plays a greater role in the decision of a household to find a place,” Hicks said.

The legislative session begins in January.



Contact reporter Brandon at bsmith@ipbs.org or follow him on Twitter at @brandonjsmith5.

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