(STATEHOUSE) Feb. 12, 2007 – House Republican Leader Brian Bosma was joined by only his Republican colleagues in an effort to eliminate a provision in HB1007, the House Democrat property tax plan, which will prove detrimental to Hoosier employers and job creation in Indiana.  In addition to establishing a new corporate income tax, HB1007 offers no major property tax reform, no relief for 2007 property tax bills, and a potential tax increase of over a half billion dollars per year on Hoosiers.

Representative Bosma’s amendment would have deleted the local corporate income tax.  It was supported by all 49 House Republicans but failed to pass when all 49 Democrats present voted against it.

“ This is a job killer,” said Representative Bosma.  “Employers all over the country and from overseas, as they decide where to locate or expand, look at a state’s tax structure.  This proposal sends the message that Indiana is not open for business.”

Currently, Indiana’s corporate income tax rate is 8.5 percent, ranking as the highest in the Midwest and 14th in the nation.  Other Midwestern state’s corporate income tax rates are as follows:

• Michigan 1.9 percent 
• Kentucky 4.7 percent
• Ohio 5.1 percent
• Illinois 7.3 percent

Adding the 1 percent increase called for in HB1007 would move Indiana to a ranking of 4th highest in the nation in corporate income tax.  Indiana also ranks 6th in the nation in property taxes assessed against corporations. 

“I can guarantee you that jobs will be diverted from this state if this tax plan is put into place,” said Bosma.  “We have made significant improvements to our economy in the last six years that have resulted in an increase of over 34,000 new jobs.  This move is a step backward and will jeopardize our recent job creation success.  Let’s take the corporate income tax out of the equation and make some more major changes to this bill so that we can have a bipartisan bill that helps all Hoosiers.”