Senate Budget Includes Tax Cut Smaller Than Pence’s Proposal

The governor's proposed 10 percent cut is greater than the savings offered by Senate Republicans Thursday.

David Long

Photo: Brandon Smith/IPBS

Sen. David Long unveils the Senate budget proposal.

The Indiana Senate budget proposal unveiled Thursday includes an income tax cut, but not nearly as large as Governor Mike Pence proposed.

Last year, then-congressman Mike Pence made a 10 percent income tax cut proposal the centerpiece of his campaign. But when House Republicans presented their budget earlier this session, Pence’s tax cut was nowhere to be found. Senate Republicans have added a 3 percent cut to their budget.

Pence says the Senate proposal shows he and the General Assembly are beginning to come together, but he adds there is still plenty of negotiation left this session.

“I welcome the addition of a reduction in personal income taxes to the framework of this budget, and I look forward to productive and energetic discussions in the weeks ahead,” Pence says.

Senate President Pro Tem David Long says the total tax cut package in the Senate budget, including elimination of the state’s inheritance tax, continued reduction of the corporate income tax rate and the 3 percent personal income tax cut, totals around $500 million a year in tax relief, which is roughly equal to Pence’s proposed cut.

“While not disagreeing with the governor that an income tax cut should be part of the package, we think including other tax cuts as well is a better way to go,” Long says.

The proposed budget passed the Appropriations Committee along party lines and now heads to the Senate floor.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

View all posts by this author »

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From

Search News

Stay Connected

RSS e-mail itunes Facebook Twitter Flickr YouTube

Follow us on Twitter

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Recent Politics Stories

Recent Videos

Find Us on Facebook