On the first Monday after the end of the 2013 legislative session, Governor Mike Pence and Speaker Brian Bosma seemed to be in good spirits, even after a session where their disagreements over the governor’s tax cut proposal were often public.
Legislative leaders often expressed reluctance to endorse Pence’s call for a 10 percent income tax cut. Pence says that debate lasted until the final days of the 2013 session.
The final agreement was a package that includes a 5 percent income tax cut spread over three years, beginning in 2015, immediate elimination of the inheritance tax and continued reduction of the corporate tax.
Pence calls it the right tax cuts for the right time.
“So I kept on asking for what we had proposed, but at the end of the day I think the tax relief that we crafted together is better than what I was proposing,” he says.
Democrats have criticized the final package, saying the income tax cut is too small to make a noticeable difference for middle-class Hoosiers. Speaker Bosma says the economic benefit will come from the blend of tax cuts and the statement Indiana’s making.
“The mere fact that we’re cutting income taxes in a substantive way I think is going to make us stick out from the rest of the crowd while we’re not covering that cut with other tax increases,” Bosma says. “That’s what’s happening elsewhere.”
When asked about the possibility of vetoes, Pence says there are still several bills he has concerns about though he would not give specifics. Bosma says it is unlikely the House will override a veto of anything other than the budget.