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Mike Pence Proposes 10 Percent Cut To State's Income Tax

By Brandon Smith

Posted July 31, 2012

GOP gubernatorial candidate Mike Pence is proposing what he calls the largest cut of personal income taxes in state history.

Pence's plan would cut the individual income tax rate 10 percent over his first two years in office, dropping it from 3.4 percent to 3.06 percent. That would also put the state's rate at its lowest in more than 15 years.

For an average Hoosier family of four, the cut would mean more than $228 less in taxes, and Pence says it would benefit 92 percent of Indiana's small businesses.

The cost to the state would be a loss of about $533 million in revenue. But the 6th District Congressman says he would also rein in spending to make sure the tax cut wouldn't drain the state's budget reserves.

"I believe strongly that when government has too much money, it needs to return that money to taxpayers who first earned it," Pence said in a statement. "Thanks to Governor Daniels, we are in such a positive fiscal condition that we can afford to do that on a permanent basis."

Democratic gubernatorial candidate John Gregg says he has been talking about tax cuts for weeks, particularly the elimination of the gasoline sales tax.

"Our figures showed $261 up to over f$500 for a family of four, and that's really more significant than the tax cut that the Pence plan, as I understand it."

Gregg has also proposed tax breaks for companies headquartered in Indiana.

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Mike Pence Proposes 10 Percent Cut To State's Income Tax

By Brandon Smith

Posted July 31, 2012

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