Pence seeks to cut state income taxJuly 31st, 2012 at 4:42 pm by Jim Shella under Jim Shella's Political Blog
Mike Pence, the Republican candidate for governor, wants to cut your state income tax. Democrat John Gregg has already proposed cutting the corporate income tax and the state sales tax on gasoline. Pence tried to trump that today with a call to cut the state income tax by 10%.
He chose a luncheon appearance before the Indianapolis Chamber of Commerce to unveil what he says is an effort to create new jobs. “The rate would be reduced by 5% in fiscal year 2014 and 5% in fiscal year 2015,” he said in prepared remarks. “This tax cut will put $5 million directly back into Indiana’s economy.”
It would mean the tax rate would drop from 3.4% to 3.06% and, Pence says, the benefit to a family of four would be about $228 a year. That’s money that might otherwise go to school spending, and in a meeting with reporters Pence suggested that his school budget will be a thin one. “While education has been frozen in recent years,” Pence said, “test scores are going up and graduation rates are going up and if I serve as governor of the state of Indiana we’re gonna stay completely focused on results.”
House Ways and Means Chairman Jeff Espich (R-Uniondale) says schools could expect little in the way of new state revenues. “They would be restored to the level they were 2 or 3 years ago,” said Espich.
Pence says it’s a matter of priorities and tax cuts are at the top of his list. “With this tax cut Indiana will have the lowest tax burden in the Midwest,” he told the chamber audience, “giving us an even better story to tell businesses looking to invest in the heartland of America.”
The campaign of Democrat John Gregg attacked Pence’s credibility rather than the plan. A spokesman says he has none, because he’s voted for increasing deficits while in Congress.