Whether or not the "temporary" 1% tax on those earning $100,000/year or more proposed by Republican Governor Mitch Daniels will come to pass remains to be seen. If it does pass, the Tax Foundation issued a report that makes the following claim:
"...this tax increase would make Indiana’s business tax climate more hostile to business investment, less competitive in attracting more jobs, and harm Indiana’s ability to keep the jobs currently located there. If the proposed tax increase had been in effect when the last Index rankings were calculated, Indiana, which ranks 12th best in the Index, would have dropped to 19th."
Ouch. Well, all policy has cause and effect, and there it is. The Tax Foundation has done their homework on Daniels, invoking the governor's words from the campaign trail.
"Governor Daniels should withdrawal his proposed income tax surcharge. Daniels himself vowed, as a candidate for Governor, to do a better job competing with neighboring states for jobs and investment. This makes his proposal all the more surprising considering that it would make Indiana less competitive."
Couldn't agree more. I am eager to see where Tax Freedom Day lands this year. This is the Tax Foundation's hallmark annual report. Last year, they pegged Tax Freedom Day- the day the average American is finally done paying for the year's taxes, and earning for himself and family- at April 11. The original 2005 projection is for April 14.