House Speaker Bauer says governor's plan provides some tax relief

Indiana House Democrats entered the 2008 legislative session committed to one goal: providing broad-based property tax relief. It has been a goal we have worked on for two years, and we have worked together with Republicans to find a bipartisan solution.

Hoosiers demanded action on the Governor's program, and it has been delivered.


There are provisions in House Bill 1001 that will help property taxpayers immediately. The relief contained in this legislation, combined with the second phase of the property tax cuts approved in a bipartisan manner in 2007, will cut property taxes by nearly $900 million this year.

When the governor first announced his program, House Democrats were the first to raise concerns about how his tax shift would harm working families, seniors and renters.

The final agreement contained in House Bill 1001 largely protects these people. We have increased the Earned Income Tax Credit and the renter's deduction, and helped seniors living on fixed incomes who deserve the chance to keep their homes.

Although the plan undoubtedly provides help in 2008, it may not be the final answer. The 600-page House Bill 1001 is a major shift to state funding that carries an enormous price tag, and there is great risk due to the state of our nation's economy and its impact on the state's treasury.

We will have the next eight months to see if the governor's plan is sustainable. I worry that this grand experiment might not provide ever-lasting property tax relief. It could lead to income tax increase and cuts in both education and public safety. I sincerely hope that local governments and schools will be able to adapt to the tax caps without creating crises in our communities.

The governor's plan does provide some answers. But there will be new questions and unintended consequences, and House Democrats stand ready to solve these problems as they arise.