|(left to right) Mike Pence, John Gregg, and Rupert Boneham|
(Indianapolis, Ind.) – Indiana’s Republican candidate for governor is promising to cut taxes if elected, but his Democrat opponent says he has no credibility on tax policy.
Republican Mike Pence unveiled his tax plan Tuesday in Carmel. He is calling for Indiana’s 3.4 percent individual income tax rate to be cut by 10 percent over two years – a move that he claims would save a Hoosier family of four more than $228 each year.
“The time has come to cut taxes for every Hoosier, in the city, in the factory and on the farm,” said Pence. “We will make Indiana the most attractive place in the Midwest to start a business, grow a business, or get a job.”
The reduction would also apply to the 92 percent of small businesses which pay their taxes under the individual income tax.
Pence, currently Indiana’s Sixth District congressman, said he would maintain the state’s reserves at 12.5 percent of the state budget. Currently, Indiana has a $2.15 billion surplus.
“I believe strongly that when government has too much money, it needs to return that money to taxpayers who first earned it,” said Pence. “Thanks to Governor Daniels, we are in such a positive fiscal condition that we can afford to do that on a permanent basis.”
However, Democrat John Gregg’s campaign criticized Pence for waiting so long to reveal his tax plan. Gregg announced in April he wants to eliminate the sales tax on gasoline. He has also proposed replacing the corporate income tax with an online sales tax and giving families a tax credit for child care.
“We welcome Congressman Pence to the discussion of tax cuts for Hoosiers, something John Gregg has been proposing for month,” said Gregg for Governor Communications Director Daniel Altman. “Unfortunately Congressman Pence has no credibility when it comes to cutting taxes responsibly and keeping the budget balanced.”
Altman claimed Pence’s tax proposal would disproportionately benefit the wealthy, citing his voting record in the U.S. House of Representatives.
Libertarian candidate Rupert Boneham will reveal his tax plan in coming weeks, a campaign manager told The Indianapolis Star.