Hoosiers To See 5% Income Tax Cut
The Indiana House and Senate are expected to hold votes today on a new two-year state budget package. The compromise financial blueprint includes a 5 percent income tax cut, even though Gov. Mike Pence had sought a 10 percent reduction. The budget also contains a repeal of the inheritance tax while increasing funding for education. The package sets aside $400 million for big highway projects.
Gov. Pence calls the compromise on a 5 percent individual income tax cut a “great victory” for Indiana taxpayers. He says the deal will benefit provide a boost to families, businesses and farms.
“Hoosier taxpayers won a great victory. The agreement reached between our administration and legislative leaders will be the largest state tax cut in Indiana history,” said Pence. “The combination of a 5 percent individual income tax cut, inheritance tax repeal and additional tax relief for businesses is the right tax relief at the right time and will give a much needed boost to working families, small businesses and family farms.
I am grateful for the leadership of Senate President Pro Tem David Long, Speaker Brian Bosma and other key fiscal leaders for working diligently with our administration to craft this historic package of tax relief. Their efforts demonstrate the commitment of the General Assembly to put taxpayers first.”
Senate President David Long said, “When fully implemented, this is the single largest tax cut in the history of our state. 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.”
Speaker Brian Bosma added, “Through hours of important discussions, we have reached a budget that reflects the goals that House Republicans set out to achieve this session. 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.”
Sources: Indiana Senate Republican Caucus, Office of Governor Mike Pence and Inside INdiana Business