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Sunday, December 04, 2016
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  • WEST LAFAYETTE – Is it September already? While I’m gearing up for my economics class at Purdue, it’s a good time to take a look at the economy. Got to offer those eager young people the latest word!  Let’s start with gross domestic product, our main measure of goods and services production. GDP grew 1.2 percent above inflation from July 2015 to June 2016. That’s pretty slow. Don’t blame consumers. Consumer spending increased 2.7 percent above inflation over the past year, and when people buy, businesses produce more products and hire more employees. There are good reasons to think that consumers will keep spending. Job prospects are better. Wages are edging upward. Home and stock prices are up. Let’s put consumers down for 3 percent spending growth next year.
        
  • WEST LAFAYETTE – The good folks at the Indiana Department of Education sent me some school finance numbers to play with. School finance is a big topic in the Indiana General Assembly this year, so this is a good time to do some number crunching. Here’s number crunch one. In fiscal year 2015 – that’s July 2014-June 2015 – the state will distribute almost $6.6 billion to public school corporations and charter schools. State aid was $6.2 billion in calendar year 2012 (it was switched to fiscal years in 2013), so that’s an increase of 5.1 percent in two and a half years. Consumer price index inflation was about 3.4 percent during that period, so there’s been a small increase in what state aid can buy. Inflation is expected to be about 2 percent per year during the next biennium. Will aid increase enough to match? The increase in state aid will be one of the most closely watched numbers in the debate over the next budget.
  • WEST LAFAYETTE – Once again, farmland assessments and property taxes are going up. The Department of Local Government Finance, which oversees the property tax in Indiana, has set the base rate per acre of farmland for 2015 taxes at $2,050 per acre. That’s a 16 percent increase from the base rate for 2014 taxes. In December the DLGF announced the base rate for 2016 at $2,420, another 18 percent increase. The base rate has been rising for years. But, this year, it’s a hot topic in the General Assembly. The base rate is the starting point for farmland property tax assessment. It’s a statewide dollar amount per acre. It’s adjusted by each acre’s productivity index so that the acre’s value reflects how much corn it can grow. Some values are adjusted downward for factors like forest cover or frequent flooding. The resulting assessment is multiplied by the sum of the tax rates for the local governments where the land is located. That’s the tax bill.
  • WEST LAFAYETTE - The headline said “Hoosiers’ taxes rise as income goes down.”  The story told of the Tax Foundation’s finding that Indiana taxes had increased from 8.4 percent of income in 2001 to 9.5 percent of income in 2011. Like many, I thought, “You’ve got to be kidding!” Our Legislature has passed big tax reforms, we’ve voted for constitutional amendments, we’ve seen property tax cuts, income tax cuts, corporate tax cuts. And our tax burden has gone up? How?

  • By LARRY DeBOER

    WEST LAFAYETTE -The Indiana General Assembly may consider eliminating property taxes on personal property in the upcoming session. Personal property is almost entirely business equipment. Eliminating this tax could encourage more business investment in Indiana, especially since some of our neighboring states have already eliminated this tax. Personal property owners pay about a billion dollars in property taxes to local governments, which is 16 percent of total property taxes. Eliminating this tax would create some big tax and budget issues for legislators to consider. Here's why.

  • WEST LAFAYETTE — July 11 was one of the great days on the number-crunching calendar. It was Indiana’s “close-out,” the day the Indiana State Budget Agency wraps up the numbers for the fiscal year.
        
    And there’s no doubt, we’re in good shape. We took in more revenue than we spent in fiscal 2013, and we’ve got nearly $2 billion in the bank, which is a healthy 13 percent of the total budget.
        
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  • Daniels calls on Trump to tackle the $14 trillion in national debt
    “It is an enormous impediment to long-term growth in this country. The president-elect didn’t cause this problem, but I think he is that president for whom it will not wait another four years. I’ve said in at least two presidential election cycles, this country cannot wait out another presidency without getting serious about this problem. I’m pretty sure I’m right this time.” - Purdue President Mitch Daniels, calling on President-elect Donald Trump to tackle the $14 trillion national debt. Daniels made his comments as one of three co-chairs of the Committee for a Responsible Federal Budget, a nonpartisan budget watchdog group. In 2011 as the former White House budget director positioned for the 2012 presidential race, Daniels cited the "great red menace" of national debt in a speech to CPAC, then wrote about the topic in his book "Keeping The Republic."
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HPI Video Feed
Pence lauds Carrier deal
Gov. Mike Pence talks about the Carrier jobs deal with Scott Pelley on CBS.

President-elect Trump's Thanksgiving video
President-elect Donald Trump outlines plans for his coming administration in this Thanksgiving video.

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Trump taxes

Should Donald Trump release recent tax returns, like every major party nominee has done over the past 40 years?


 




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