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Senate Budget Includes Tax Cut Smaller Than Pence's Proposal

By Brandon Smith

Posted April 4, 2013

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.

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