Legislators are moving ahead with a plan to cut Indiana's corporate income tax by about 40 percent while holding off on phasing out the state inheritance tax.

The state Senate tax committee on Tuesday heard testimony that Indiana's corporate tax rate of 8.5 percent is among the nation's highest. Supporters of cutting it to 5 percent say the higher rate discourages businesses from moving into Indiana.

Committee Chairman Brandt Hershman of Lafayette says the panel is still working on covering the projected $141 million annual tax revenue loss, but that he expected the panel to vote on the plan later this week.

The committee also heard from supporters of phasing out the inheritance tax over five years. Hershman said that bill won't advance this session because of its cost.