Indiana Governor-elect Mike Pence
(Indianapolis, Ind.) - Indiana Governor-elect Mike Pence says he will work for a state income tax cut when he takes office.
Pence said Monday that recently released state budget projections show there will be room for the 10 percent cut. The forecast predicts 2.2 percent revenue growth in 2014 and 2.9 percent in 2015, according to the Indianapolis Star.
The Republican had projected 2.5 percent growth in each year when he made a campaign promise for the tax cut. He called the forecast “welcome news.”
“This revenue forecast is also consistent with the growth we projected this summer and will allow us to recommend a budget that lives within our means, maintains reserves, funds our priorities and provides tax relief for every Hoosier,” Pence said in a statement. “We will look forward to utilizing this new revenue forecast as we work to complete a recommended budget which we will submit to the General Assembly in January.”
Still, both Republicans and Democrats in the legislature are skeptical the state will be able to afford the cut Pence promised voters during his campaign. Earlier this year, lawmakers passed laws phasing out the state’s inheritance tax and lowering corporate taxes.