Indiana Governor Mike Pence
(Indianapolis, Ind.) – Governor Mike Pence is getting halfway to his proposed 10 percent personal income tax cut.
House and Senate leaders finalized an agreement on Indiana’s next two-year state budget Thursday. House Speaker Brian Bosma (R-Indianapolis) and Senate President Pro Tem David Long (R-Fort Wayne) say the budget bill includes a three percent individual income tax cut for Hoosier taxpayers in 2015 and an additional 2 percent individual income tax cut in 2017.
The bill also includes an immediate repeal of the state inheritance tax as well as corporate tax cuts. Last year, the state had approved a phase out of the inheritance tax over nine years.
Long said in a press release the tax cut is the largest in the state’s history.
“We believe these tax cuts are responsible and will have a positive impact on every Hoosier taxpayer and provide a meaningful boost for the Hoosier economy. I appreciate the hard work of the House and Senate fiscal leaders in putting this tax package together and thank the Governor for his willingness to find common ground and embrace a winning tax cut package for all Hoosiers,” said Long.
Bosma echoed Long’s back-patting. As the 2013 lawmaking session winds down, the speaker said House Republicans accomplished what they set out to do with the budget.
“Our budget meets our goals of prioritizing education and road funding while maintaining strong fiscal reserves. In addition we integrated a conservative concept for state budgets of paying cash for projects and reducing the state’s debt burden,” Bosma stated.
“After meeting each of these goals and with a proven track record of fiscal integrity, we are in a positive fiscal environment to give Hoosiers the largest tax cut in the history of Indiana. This blend of tax relief will have a positive impact on Hoosiers across the state and will result in a tax cut for every Hoosier.”
Bosma said the budget also restores K-12 education to prerecession levels, although statehouse Democrats asked for more. Governor Mitch Daniels cut $300 million from education in 2009.
First term Republican governor Mike Pence promised to seek a 10 percent personal income tax cut phased in over two years during his campaign. Considering GOP supermajorities exist in both the House and Senate, Pence had to lobby harder than he might have expected for the tax cut.
Even at a five percent cut over the next four years, Pence called the latest budget bill a great victory.