Pence Gets Half His Tax Cut In Budget Deal
Legislators have reached a deal on a new state budget which gives Governor Pence half the tax cut he asked for.
The House and Senate will vote Friday on a deal which includes a five-percent tax cut, phased in over four years. Your tax rate would go down a tenth of a point on your return for 2015, then dip to a final rate of three-point-two-three two years later.
The long phase-in means legislators will be writing the next state budget before the rate goes down. Senate Appropriations Chairman Luke Kenley (R-Noblesville) says the delay gives the state time to monitor its revenues and spending and gain confidence that the cut is affordable.
The budget also immediately repeals the state‘s inheritance tax, and phases in a tax cut for banks to match the phased-in reduction already on the books for corporations.
Pence issued a statement calling the deal “a great victory” for taxpayers .
The budget leaves a projected surplus of 13-percent of spending.
The budget increases school funding by three-percent over two years, with an additional 32-million dollars set aside to reward top-performing schools and teachers.