No sign of tax cut in proposed state budget

Feb 15, 2013

The House Republican budget does not include Governor Mike Pence’s proposed 10% income tax cut. But House Democratic leaders are promising the cut will get an up or down vote on the House floor.

The House GOP budget, which will be publicly presented to the Ways and Means committee Monday, includes significant increases in education and roads funding.  But it leaves out Governor Pence’s tax cut, and does not assume there will be any taxpayer refund at the end of the budget cycle. 

Still, budget author Tim Brown – the Ways and Means chair – says he’s not ruling the tax cut out.

“I’m not saying there’s not enough money,” Brown said, “I’m saying that we’ll have to have, again, discussion of priorities going forward and the debate of more information coming as the session goes through.  We still have a long process toward the end.”

House Minority Leader Scott Pelath says House Democrats will call for a vote on the tax cut when the budget bill reaches the full House, and says there will be some Democratic support.

“We’re not the ones that have to tell Governor Pence, ‘No,’” Pelath said. “But I’m going to give him credit for something – he has had an idea.  He campaigned on it, he got elected on it, the people of Indiana have spoken and we need to give that consideration.”

In a statement, Governor Pence said he’s very disappointed in the House Republican budget proposal and pledged to continue to fight for his tax cut.