Fiscal policy has deteriorated in Indiana, and the state is now ranked well below average. While between 2006 and 2008 local governments were responsible for most of the rise in debt, between 2008 and 2010 the state government was the main culprit. Virtually all the increase in state government debt came in the form of “long-term public debt for private purposes,” which increased from $9.8 billion to $13.2 billion in FY 2010. On the other hand, the slight rise in tax burden is entirely attributable to local governments. The total state tax take fell from $15.1 billion (FY 2008) to $13.9 billion (FY 2010), while the local take rose over the same years from $8.5 billion to $9.5 billion, even as personal income fell.Thanks to alert reader Clarke Kahlo for sending the link to this story.
Monday, September 23, 2013
Study Finds Indiana Local Government Increasing Taxes and Debt for Corporate Welfare
The Mercatus Center at George Mason University released a report on "freedom" in the 50 states. Indiana received a #16 ranking. While the state officials were discussed positively, the report contained a warming about local governments increasing taxes and borrowing, the latter almost entirely for corporate welfare: