Holcomb
Gov. Eric Holcomb today proposed a plan to return $1 billion to Hoosier taxpayers to combat the effects of inflation.
The money would come from state reserves, following higher than expected revenue performance this fiscal year, according to a statement from his office.
Each taxpayer would get an additional $225 on top of the $125 tax refund that Hoosiers are currently receiving from the state’s automatic taxpayer refund (ATR). In total each eligible Hoosier would receive about $350, with a married couple filing jointly to receive about $700.
“Hoosiers have real needs right now during this period of high inflation, from the gas pump to buying groceries, and everyone should benefit from the state’s success,” Holcomb said in the statement.
Holcomb says he has outlined his plan to state legislators and he will need their help to make it a reality.
“I’ve met with Speaker Huston and Senator Bray and have asked them to discuss getting a billion dollars back into Hoosier hands with their colleagues,” Holcomb said in the statement. “I’ve committed to work with them to call a special session before the end of June to take action to align this second round of returns with our current ATR.”
The state’s total surplus stands at around $6 billion. The state’s reported revenues for May were $209 million over forecast and for the 11 months of the fiscal year, revenues came in $1.075 billion over forecast, according to a state financial report released today.
If approved, the $225 payment would be made to the bank accounts of eligible Hoosiers, or be mailed to taxpayers, like the current ATR. Paper checks will be mailed to taxpayers beginning in August and both refunds will be reflected in the one check for $350 for individual taxpayers, or $700 for those filing jointly, would be issued, the statement says.
Republican House Speaker Todd Huston (R-Indianapolis) said Thursday that he supports Holcomb’s call for a special session “to put more money directly back into taxpayers’ pocket” and would work with the governor and his Senate colleagues to schedule one.
“By issuing another round of automatic taxpayer refunds, we can provide quick and substantial relief while maintaining the state’s prudent reserves and providing budget flexibility moving forward,” Huston said in a statement.
Republican Senate President Pro Tem Rodric Bray (R-Martinsville) also signaled support for Holcomb’s proposed tax refund, noting the “unprecedented level of inflation our nation is experiencing.”
“Thanks to Indiana’s continued fiscal prudence, we can consider providing some relief to Hoosiers who are trying to adapt to today’s challenges by returning some of their hard-earned money back to them,” he said in a statement.
Democrats had called for Holcomb to issue an emergency order suspending the gas tax.
Johnson County lawmakers issued a joint statement expressing support for Holcomb’s plan.
State Rep. Michelle Davis (R-Whiteland) said this builds on the previous ATR to provide additional relief.
“This year, we passed a $1 billion tax-cut package to lower income taxes and utility costs, and we also already returned $545 million back to Hoosiers through the automatic taxpayer refund. With inflation getting out of control, I support this effort to provide relief from these negative effects on everyday Hoosiers,” Davis said.
State Rep. Chris May (R-Bedford) said the refund will help taxpayers who are struggling with inflationary costs.
“Everyone is feeling the pinch of higher costs, from the gas station to the grocery store. Passing another automatic taxpayer refund is the quickest way to provide relief to hardworking Hoosiers,” May said.
State Rep. John Young (R-Franklin) said Holcomb’s plan is good strategy to fight inflation.
“This is the most effective action we can take for Hoosiers feeling the sting of inflation caused by the Biden Administration and D.C. Democrats. Inflation is at record highs in Indiana and across our nation, and issuing taxpayer refunds would help offset some of that burden for Hoosiers,” Young said.
Earlier this month, Holcomb rejected calls for suspending state gas taxes to cut the 56 cents per gallon in state taxes on gasoline, saying instead that he was preparing a plan for “inflationary relief.” Holcomb said he agreed with Republican legislative leaders that suspending state gas taxes would be an inefficient way to get financial help to people across the state.
Indiana Democrats are calling state leaders to do more.
Senate Democratic Leader Greg Taylor (D-Indianapolis) said he is glad Holcomb is taking some action, but the plan doesn’t do enough for Hoosiers.
“Providing every Hoosier with $225 will help a lot of people trying to make ends meet right now,” Taylor said in the statement. “However, the one-time payment is temporary relief. It isn’t enough to address the ongoing struggles that Hoosiers are facing. Hoosiers’ financial struggles are ongoing and relief needs to be ongoing as well.”
— The Associated Press contributed to this report.
