(Indianapolis, Ind.) - Governor-elect Mike Pence is defending his ten-percent tax cut plan, saying it will ultimately lead to more jobs.
Under the plan, taxes for a family of four would be cut by $228. Taxes would go down about $1,000 for a small business with an income of $300,000 a year.
According to The Indianapolis Star, Pence will inherit $2 billion in state reserves when he takes office in January. He wants to give some of the money back to taxpayers.
Pence, a Republican, may face some resistance from his own party, however. House and Senate leaders Brian Bosma and David Long say they aren't sure the state can sustain a lower tax rate over the long term if the economy falters.
The legislative leaders said there is much uncertainty ahead in terms of state tax revenue. Indiana is already committed to phasing out the inheritance tax, increased Medicaid costs through the federal Affordable Care Act, and forecasted lower casino gaming revenues.