Strangely, there is little opposition to eliminating taxes on the equipment (personal property) of Indiana’s businesses. The question is how to replace the $1 billion in revenues lost by Indiana’s counties, cities, towns, school corporations and libraries. That’s significant money for police, fire and other public services.
Gov. Mike Pence and his allies are scrambling to find a replacement for those lost revenues. Raise the state’s sales tax? No one favors that. Allow local governments to impose a sales tax? Never! That would be anarchy, chaotic competition among neighbors.
Thus far, the most favored idea allows communities to raise one of the local option income taxes. State politicians like this because local office holders will be blamed for the higher taxes.