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Eliminating Indiana’s Income Tax Would Jeopardize Public Services & Create a Windfall for the Well-Off – ITEP

“Indiana already has one of the most regressive tax systems in the nation, meaning it asks low- and middle-class households to contribute a larger share of their income than the state’s richest households to fund state services that benefit us all. The state’s existing tax structure exacerbates inequality. More and deeper cuts to the income tax will only make this matter worse. A heavy reliance on sales and excise taxes are characteristics of the most regressive state tax systems, and Indiana’s 7 percent sales tax is one of the highest in the nation.”


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