Governor Mitch Daniels has proposed, as part of his property tax reform package, increasing the state sales tax by 1%. If the state sales tax were increased in the 2008 session of the Indiana General Assembly, but property taxes still existed, then the potential for Indiana to once again repeat history is possible. For over 70 years whenever the legislature passes “property tax relief or property tax reform” new taxes are created or an existing tax is raised in exchange for temporarily lowering property taxes. The same thing could happen in Indiana in 2008 if the sales tax is increased and property taxes are not eliminated. Other states are looking at raising sales taxes too. According to an article in U.S.A. Today on October 3, 2007 “a growing number of state and local governments are considering big sales tax increases to pump up sluggish revenue, cut property taxes or pay for new programs.” “Polls show that the sales tax is the least – hated major tax. The property tax is disliked most, followed by the income tax, according to polls by the Tax Foundation and other groups.”

Advance America does not support raising any tax or creating any new tax unless it is tied to the permanent elimination of property taxes. More information is available on our website at www.AdvanceAmerica.com on how property taxes can be permanently eliminated and replaced with a spending control and a 1% income tax increase and a 2% sales tax increase.

Other States are Looking to Raise Taxes too.