Mike Pences proposed 10 percent income tax cut would bring relief to Hoosier taxpayers while also helping Indiana to better compete for jobs.
Not everyone shares these priorities.
As reported by The Journal Gazette Aug. 8 (Report: Rich benefit most in Pence plan), the Institute for Taxation and Economic Policy published a report that claims the proposed tax reduction is unfair. ITEP states a better policy would be to instead raise the personal exemption, which would help more lower-income Hoosiers and distribute tax relief fairly.
This criticism is misguided.
Somehow, a 10 percent reduction for all Hoosier taxpayers is considered unfair because 10 percent for some people is a greater number than 10 percent for some others. ITEP also believes it is unfair that those who do not pay income taxes would not receive any benefit. However, this too ignores the fact that a lower income tax would encourage economic activity and create jobs for all income levels.
This criticism is typical of the class warfare President Obama has repeatedly encouraged. While I am sure the president would approve of this analysis, Hoosiers know better and should not be surprised that a group that opposes most sensible tax relief plans opposes the Pence tax plan.
ITEP is a left-leaning organization that states its purpose as advancing tax fairness and sustainability. The organization supports a national online sales tax, dismisses that tax cuts can spur economic growth, and specifically opposed Indianas eliminating its state inheritance tax. Former Clinton secretary of labor Robert Reich is a board member. Currently, Indiana ranks 11th in business tax climate as measured by the Tax Foundation.
In terms of competing for more jobs and advancing economic freedom, tax rates are a key factor. By lowering its income tax rate, Indiana will be in a better position to compete for new industries and jobs.
Indiana state director
Americans for Prosperity