Standard deductions for federal and state income taxes need to be increased substantially as well as its cost of living, inflation increase. Why do lower- and middle-income taxpayers pay more in Indiana state taxes than USA federal taxes?
I paid $381 more in Indiana income tax in 2018, $448 more in 2019 and $487 more in 2020 than I did in Federal tax because primarily the standard deduction is $2,500 for my state which is not adjusted for inflation and $13,600 for federal in 2018, $13,850 in 2019 and $14,050 in 2020 which is adjusted for inflation each year; but, at a substandard rate. The Hendricks County tax rate was increased 3.3 percent for 2019 and 9.6 percent for 2020 that added to this increase. Also, we pay an Indiana sales tax of 7 percent to 9 percent, wheel taxes, property taxes, license taxes, gasoline taxes, gaming taxes, excise taxes, etc. Contact your governor, senators and state representatives.