(Indianapolis, Ind.) - Indiana Democrat gubernatorial candidate John Gregg calls his new corporate tax plan the “Hoosier Handshake.”
Gregg unveiled his two-part tax plan Wednesday in Indianapolis.
One part is to eliminate the corporate income tax for homegrown Hoosier businesses and for companies that choose to relocate to Indiana.
Two - reduce the tax burden for all companies that hire Hoosiers or make job-creating investments in factories, equipment, or research and development here in Indiana that are targeted to economic development priorities.
Gregg says more corporate tax rate cuts are needed after the rate was slashed last year from 8.5 to 6.5 percent.
The reduced revenues from those tax reductions would be made up by collecting taxes by online sales. Gregg’s campaign says the state could gain up to $400 million in revenues if it begins collecting online sales tax by January 1.
Gregg is running for governor against Republican Congressman Mike Pence. Pence unveiled his plan in August – to do away with inheritance taxes and cut Indiana's individual income corporate income taxes to three percent.
The former speaker claims Pence’s state tax plan would cost $315 million and continue to give out-of-state and foreign corporations an advantage.
Republicans, meanwhile, accuse Gregg of raising the corporate tax rate when he was speaker of the House from 1996 to 2002.
"When economic times got tough in Indiana, Speaker John Gregg had a solution: delay payments to schools, take on debt and raise taxes on Hoosiers. This is hardly a "fiscally responsible" record. It's the record of someone who wants to grow government through tax increases and massive debt – again,” said Indiana Republican Party Chairman Dan Parker.
Last month, Gregg proposed permanently eliminating Indiana’s gasoline tax.