On February 21, 2026, the Indiana State Legislature unveiled a new tax proposal aimed at providing relief for middle-class families. The bill, titled the Middle-Class Tax Relief Act, seeks to lower income taxes for households earning between $50,000 and $100,000 annually.Under the proposed legislation, the tax rate for this income bracket would decrease from 5.5% to 4.5%, resulting in significant savings for thousands of Hoosier families. The bill also includes provisions to increase the standard deduction for middle-income earners, further reducing their tax burden.In a statement released by the bill's sponsors, Senator John Smith highlighted the importance of easing the financial strain on working families. "Middle-class Americans are the backbone of our economy, and it's crucial that we provide them with meaningful tax relief," said Senator Smith. "This bill is a step in the right direction towards ensuring that hardworking Hoosiers can keep more of their earnings to support their families."The proposal has received bipartisan support, with lawmakers from both sides of the aisle praising the initiative as a positive step towards promoting economic growth and prosperity in Indiana. Governor Sarah Jones has also expressed her support for the bill, urging swift passage through the legislature.However, some critics have raised concerns about the potential impact of the tax cuts on the state's budget. Opponents argue that the decrease in revenue could lead to cuts in essential services and programs, jeopardizing the wellbeing of vulnerable populations.The Middle-Class Tax Relief Act is expected to undergo further review and debate in the coming weeks before a final vote in the State Legislature. If passed, the bill would take effect in the next fiscal year, providing much-needed relief for thousands of middle-class families across Indiana. Stay tuned for more updates on this developing story.