PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

The Hoosier State Model: How Tax Reform Boosts Competitiveness and Growth

By at 22 September, 2017, 12:53 pm

NEWS

Vice President Pence Returns Home to Indiana for Tax Reform Event
U.S. Policies Needs to Emulate and Support Positive Business-Friendly Reforms

Washington, D.C. – Today, Vice President Mike Pence travels to his home turf for a tax reform event in Anderson, Indiana. As Governor of the Hoosier State, Vice President Pence enacted a series of small-business policy reforms, including tax relief and reform, which bolstered Indiana’s competitiveness and business environment. Many of the state’s prominent Republican elected leaders, as well as Democrat Senator Joe Donnelly, will join the Vice President in Indiana.  According to the nation’s leading advocate for entrepreneurs and small businesses, such bipartisan cooperation is a good signal that tax reform can be achieved in 2017.

“Dramatic policy improvements in the Hoosier State, and specifically tax relief and reform, demonstrate why policy matters to investment, quality job creation and successful small business growth. Reforms in Indiana have made a dramatic difference in terms of the state’s current reputation as a top place for business.  Federal policies not only need to stop undermining state-based policy improvements, but the United States needs to fully restore its global standing and policy-friendly ecosystem. Tax reform is absolutely essential to this end, and I applaud the bipartisan showing in Indiana for improvements to our tax system that will benefit the growth of small businesses and entrepreneurship in America,” said Karen Kerrigan, president & CEO of the Small Business & Entrepreneurship Council.

Indiana ranks a highly competitive #7 on SBE Council’s Small Business Policy Index 2017 as a result of multi-year policy reforms, including reductions in personal income, individual capital gains and dividend tax rates, as well as corporate income and capital gains taxes under Governor Pence’s leadership.

The state has a very competitive position on CNBC’s Top States for Business 2017 list, which includes the #2 ranking for “cost of business” (the tax climate is measured in this category).

Indiana also achieved the #5 spot on Chief Executive’s Best States for Business List 2017, including #1 in the Midwest.

“Tax reform is a critical policy tool that entrepreneurs are expecting in 2017. They are counting on significant tax relief to provide a capital boost, where it will be plowed back into their businesses and used to improve wages and benefits for their employees. Congress must understand that tax reform is vital to sustaining the newfound confidence among small businesses. High confidence is key to driving investment and expansion activity, which will drive the healthy economic growth our country so desperately needs. In addition, data from the Census Bureau this week reports that startup activity remains well below the pre-Great Recession average. This dearth in entrepreneurship is a crises for our economy, but robust and sustainable economic growth will boost confidence and risk-taking among the many Americans who are thinking about starting a business,” added Kerrigan.

Indiana has 504,377 small businesses, with the number of proprietors increasing by 2.5 percent. There were 2,986 new startups that created 10,527 new jobs (2015 data).
 
Kerrigan concluded:

“Our small business members applaud Vice President Pence, Senator Donnelly and the Republican members of Congress who are participating in this event today. The vast majority of Americans believe the tax code is a complicated, unfair and outdated mess. There is no reason why bipartisan support can’t emerge around reforming our ridiculous tax system. Lowering rates and simplifying the system for all, will strengthen opportunity for all. That is a goal everyone can agree to and we look forward to working with President Trump, Vice President Pence and small-business friends in the Congress to achieve that.”

For more information about Vice President Mike Pence’s policy track record in the Congress and as Governor of Indiana, see –  Governor Mike Pence: 6 Small Business Facts About Trump’s VP Pick.  

CONTACT:
Karen Kerrigan, kkerrigan@sbecouncil.org
Ray Keating, rkeating@sbecouncil.org
703-242-5840 
 
SBE Council is a nonpartisan, nonprofit advocacy, research and education organization that works to protect small business and promote entrepreneurship. For nearly 25 years SBE Council has worked to successfully implement a range of policy and private sector initiatives to strengthen the ecosystem for startups and small business growth. To learn more, visit SBE Council’s website: www.sbecouncil.org. Follow on Twitter: @SBECouncil
                                                                                                                                                       

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