It might be popular to argue for eliminating taxes, but it’s also intellectually dishonest and disingenuous.
First, it was the individual income tax. More recently, I hear talk about abolishing property taxes. And now that Gov. Mike Braun has suspended multiple taxes on gas, some Hoosiers want those taxes permanently gone as well.
These impractical ideas are in online chatter, letters to the editor and discussions around the Cracker Barrel table. I get it — no one loves taxes. But they pay for things you do want:
The fire truck coming to your house.
Schools to educate society’s youngsters.
A trip — on a paved road — to your favorite park with your kids.
There are always efficiencies to be found, but not enough to eliminate massive revenue sources. Saying otherwise is simply ridiculous.
Here’s a reminder of how much revenue those taxes generate in Indiana, according to the fiscal year 2025 Taxes, Revenue and Appropriations Handbook.
The individual income tax brought in $8.7 billion; fuel taxes $1.8 billion; sales taxes $11.2 billion. These are the three largest revenue sources for Indiana’s $22 billion annual budget.
On top of those are property taxes, which fund local services. They bring in around $10 billion a year.
Anyone who suggests getting rid of a major source of revenue without a source of replacement just isn’t being realistic. I’m talking about Florida, where residents are set to vote on a constitutional plan to substantially reduce property taxes on homesteads with no clear plan to replace the $8.4 billion.
I’m not even suggesting a dollar-for-dollar replacement but we need to be specific, not count on nebulous savings without being clear about the services that will be impacted.
I wish there were other ways for governments to raise money, but this is the reality for a state that isn’t blessed with national tourist destinations such as mountains, beaches and oceans.
Some Hoosiers see the legalization of marijuana as the answer to these tax burdens. But they aren’t even in the same realm. The highest annual cannabis tax revenue reported in 2025 was California at $640 million. The next closest state was Illinois at $465 million.
Indiana is much smaller and a recent report estimated legalization could bring in $180 million in tax revenue annually by the fifth year. That’s not even enough to cover the budget of the Indiana State Police, which is around $294 million for fiscal year 2027.
Everything is more expensive now. Think about your utility bill, grocery cost and gas fill-up.
That means everything is also more expensive for government: the food your child eats at school; the fuel the police cruisers need; the electricity that runs libraries.
On top of that, average wages in Indiana have grown to $32.99 an hour — up from $27.10 in April 2020. That means salary costs — a huge chunk of all government spending — are also going up.
I understand the frustration of paying taxes, but I try to think of what you are getting. I recently used the free Wi-Fi and a private room at my public library when I needed a workspace. I have enjoyed state parks like Clifty Falls and Turkey Run. My daughter received a quality education and had numerous higher education opportunities right here in the state. We have safe drinking water.
And, God forbid, if I need the police they will be there to protect me.
Niki Kelly from the Indiana Capital Chronicle has covered the Indiana Statehouse since 1999 — including six governors. She has been honored by the Society of Professional Journalists and Hoosier State Press Association for stories on the Religious Freedom Restoration Act, criminal justice issues and more. She also is a regular on Indiana Week in Review, a weekly public television rundown of news. She shifts her career to helm a staff of four and ensure Hoosiers know what’s really happening on the state level.
