Porter comments on income tax hike in disguise as Braun signs bill

On April 15, Gov. Mike Braun signed Senate Enrolled Act 1. 

State Rep. Gregory W. Porter (D-Indianapolis) released the following statement:  

“SEA 1 is a lose-lose. About two-thirds of homeowners will pay less in 2026 than in 2025, with a 10% credit, potentially up to $300. By phasing out the homestead standard deduction, upping the supplemental deduction and switching to a percentage-based credit, Hoosiers with lower assessed values will save little. Homeowners in rural and lower-income areas will be the ones who save less and probably pay more. 

“Local governments will be cut by $1.4 billion. Public schools will lose $744 million, and 190 school districts will lose an additional $52 million as their local income tax certified shares are cut. In the budget, most schools will also get an insufficient increase in their school funding formulas of 1.5% or less if House Republicans get their way. Your local income taxes might go up by $1.1 billion. Guess what? If you can’t afford a house, you don’t get any savings, but your taxes go up. A person making $50,000 a year could see an increase of $600. Savings in your left pocket, but you pay more out of your right.

“This will hurt our communities. Thousands of teachers protested yesterday because this bill will disadvantage their schools and the quality of education their students receive. Notice how the Fraternal Order of Police (FOP) hasn’t supported SB 1–their resources will be cut. Firefighters said these cuts would impede their ability to provide services. It’s hypocritical to vouch for small government and then kneecap the ability of our small governments to do their job. Locals have two options: raise taxes or swallow cuts that are untenable.

“Make no mistake, this is a tax hike. Less than 20 counties tax the maximum 2.5%, and very few take advantage of the full 1.25% to provide a property tax credit. That 3.75% is a fallacy. It’s not happening. This bill increases the maximum amount local governments can collect from $5.9 billion to $7 billion. They can try to explain it away, but that’s an increase. This will outweigh anything you save on your bill. 

“Braun made a campaign promise he can’t keep. Indiana Republicans want to shift the blame for taxation to local committees. Local services will suffer from massive cuts. The majority party dukes it out over who provided the bigger 'tax cut, 'and all Hoosiers and our communities lose in the process.”