The Only Dumb Question is the One Not Asked January 16, 2009 William McKelvey William McKelvey From the “Frequently Asked Questions” section of Indiana’s government website: Question Do my taxes pay the salaries of State workers? Answer Yes. State employees are typically paid from state taxes (e.g., sales, income, corporate, gam[bl]ing, etc.), as well as federal taxes and fees. I hope that doesn’t come as a surprise to too many people. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics