C.L. Coonrod & Company Article

BEA Publishes Good News for Indiana Local Government

Indiana local government depends more and more on income tax, and less on property tax. That is a problem in times of recession and slow economic growth. Recent national news has been grim, but Indiana’s numbers look relatively good.

The Bureau of Economic Analysis (BEA) published GDP numbers recently. The national results were disappointing, but Indiana’s results were very good by comparison!

Follow the link below to see how Indiana compares:

US MAP – STATE GROWTH COMPARISON

If faster economic growth results in higher incomes for Hoosiers, then revenues will follow for local governments. Don’t spend the money yet, though. The pipeline is a long one, from the time a taxpayer earns the income to the time the State collects income taxes and distributes revenue to local government.

Nevertheless, good news is good news.

If you have questions or would like further information, please contact us at: Coonrod@CoonrodCPA.com

08/25/11

This article is intended to provide information of general interest to local government officials in Indiana . The information is not guaranteed to be applicable or appropriate in particular circumstances. Local officials should consult competent professionals before acting on any information contained in this article. We are not attorneys. Advice of a legal nature should be sought only from qualified attorneys.

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.