Through four months of the fiscal year, Indiana’s tax collections have yet to meet or exceed projected levels.
Democrats on Ways and Means opposed the cut, saying it will weaken state revenues and won’t really help low-income Hoosiers.
The Supreme Court ruled Maryland could not double tax its residents on income they earn out of state.
Despite the good news, the state still isn’t meeting its total target with only two more months left in the fiscal year.
Governor Pence sent legislators a letter on Monday outlining his plan for cushioning the blow to Jackson and Pulaski counties if the veto stands.
Individual income tax collections were 22 percent lower than expected for the month of May.
The House Speaker says an income tax cut will be part of the final budget.
Governor Mike Pence sought support Tuesday from mayors and local government leaders for his 10-percent income tax cut proposal.
The House Republicans' budget does not include the governor's desired tax cuts, but House Democrats want there to be a vote on the proposal.
The governor-elect's proposal banks on 2.5-percent revenue increases in the next two years and on spending 1.5-percent more in the next state budget.