Editor's Note;

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Four men and three women want to be the next Indiana governor. Some Republicans met for televised debates. They offered “plans” for this and for that. Governor Holcomb demands they provide more details. The Indiana Capital Chronicle (ICC) declares, “Time for gubernatorial candidates to get real on the real issues”

The Indianapolis Business Journal (IBJ) asks a specific question, “What does the state need to do to boost Indiana’s per capita income?” It’s the wrong question, but five candidates responded. Only Mr. Chambers responded to that question. The others want to cut taxes which just encourages more consumer spending.

But before we get into the policy bracken, let’s be sure we know what we’re talking about. Previously, we reported “in the third quarter of 2023, Hoosier workers made $219 per week less than workers nationwide.”

Take that $219/week and multiply it by 52 weeks in the year and you have almost $11,400. Lt. Gov. Crouch says, “the average American needs an extra $11,400 more today than they did three years ago just to meet basic needs.”

Where did her $11,400 come from? Is that the average worker or the average household in the U.S. or in Indiana?

Ms. Crouch suggests a gradual elimination of our already low income tax or (her figures) $2,000 for the average Hoosier’s pocket. Is that sum the current personal income tax revenue divided by what? The number of workers, the number of tax returns, the number of households, or the total population of the state?

Which income? Income from earning, from capital gains, from interest, dividends and rent. Do we include social security payments? How about Medicare benefits received? Retirement or pension distributions?

Then there’s Mr. Holier-than-thou Doden who wants to freeze property taxes for an unspecified group of elderly home owners. Why not include elderly renters who pay property taxes via their landlords?

Does Mr. Doden know Indiana has 314,200 persons 65 and older living alone? That’s 28% of the elderly.

That grotesque inefficiency factors into our housing crisis. He says high property taxes can force seniors out of their homes. As Governor he should keep property taxes on these space hogs and foster new romantic cohabitation among the elderly.

Mr. Braun’s would reduce health care costs. This will increase patient visits and kvetching (habitually complaining) to health care workers.

Mr. Chambers' imperious idea of economic development is top-down from the state via the high-handed agency he once headed.

Mr. Hill wants to cut various taxes. He says nothing about how the state will maintain services needed by the vigorous economy he fantasizes will develop.

What would I suggest? Thanks for asking. Raise the corporate income tax, institute a graduated personal income tax, improve public services, and give businesses modest tax breaks for raising real wages for their lowest paid workers.
Morton J. Marcus is an economist formerly with the Kelley School of Business at Indiana University. His column appears in Indiana newspapers, and his views can be followed his podcast.

© 2024 Morton J. Marcus

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