INDIANAPOLIS – Republican legislative leaders are not embracing an income tax cut proposal from GOP Gov.-elect Mike Pence.
In their most significant statements yet, both House Speaker Brian Bosma and Senate President Pro Tem David Long expressed caution about the idea at a Monday luncheon previewing the 2013 session.
Long said the April revenue forecast will be crucial in seeing if Indiana’s economy could handle such a cut at a time when gambling revenue is already declining rapidly and lawmakers made promised corporate and inheritance tax cuts.
But Bosma was even more straightforward, noting Indiana’s tax revenue is already out of balance, with sales tax bringing in about 58 percent of the dollars.
That means cutting income taxes might not be sustainable in the long-term, he noted.
“I have expressed caution to those who think it’s time to cut our income tax because it throws us more out of balance,”
One of Pence’s primary campaign pledges was to reduce income taxes across the board for individuals and small businesses. The cost would be more than $500 million a year in tax collections, of which Pence did not offer a replacement.
Bosma said he has sat down with Pence recently but did not discuss the income tax proposal – “I think on purpose.”