INDIANAPOLIS (AP) — A tax law passed by the GOP-dominated Legislature during a May special session has led to complaints from Democrats who say the law continues Republican efforts in recent years to shift the tax burden from the wealthy onto middle and working classes.
Despite conforming to most of the recent federal tax overhaul, Republicans dropped parts of the federal changes that would’ve increased taxes on business.
The state will end up collecting about $155 million instead of $340 million from businesses over about three years.
Democrats say more money could’ve help fund preschool for poor kids or shore up the state’s embattled child welfare agency.
Republicans maintain that low taxes and limited regulation lead to economic growth.