The Indiana General Assembly and Governor-elect Mike Pence could be headed for a showdown in the upcoming session after Pence re-emphasized his push for a significant income tax cut Thursday.
A 10 percent cut to Indiana’s individual income tax rate was one of the tent poles of the Pence campaign’s Roadmap for Indiana. But since election night, top Hoosier lawmakers have balked at the notion.
House Speaker Brian Bosma has indicated his skepticism, suggesting the proposal isn’t sustainable over the long term. But Pence says he remains very confident in his plan ahead of a new revenue forecast due later this month.
“We can pass an honestly balanced budget with strong reserves that cuts taxes for every Hoosier and funds our priorities,” he says.
And Pence says his tax cut is about more than putting money in the pockets of Hoosiers.
“The most effective way to cut taxes on job creators in Indiana is to cut the personal income tax rate because 92 percent of business enterprises in Indiana file their taxes under the personal income tax,” he says.
Lawmakers have also expressed concerns about cutting personal income taxes after the General Assembly has already lowered corporate taxes and is eliminating the inheritance tax.