Tuesday, August 9, 2011
Pence Shows He's Clueless on Running State Government
Mike Pence wants to cut your taxes, but is it the responsible thing to do?
After saying that he would not talk about the 2012 Governor’s race until May of 2012, Mike Pence broke his silence and made his first major policy suggestion. Pence suggested cutting four taxes for Hoosiers to, as he would put it, promote economic growth in the state. He has identified three taxes he wishes to cut, and those cuts would cost MILLIONS in revenue for Indiana classrooms and local governments. A fourth tax he wishes to cut has yet to be identified.
WRTV reports that economists are questioning Pence’s plan. Pence, for his part, says that he would not push the plan until state cash reserves are higher.
In other words, it’s a ploy to try to get elected.
The plan put forth by Pence would seem to benefit the wealthiest Hoosiers by reducing income taxes, lowering the corporate tax rate to match that of income taxes, and remove the inheritance tax completely. Economist Morton Marcus called the plan out as "good theater, bad policy."
What concerns me is that the Daniels Administration has already cut and slashed everything to the bone to build a mirage of a state budget surplus of $1 billion. Traditional public schools are in dire financial shape with even the best-run districts due to go upside down on the balance sheet within five years. Pence’s plan to dig further into state revenue could further cripple the ability of the state’s public schools to deliver education to students. The plan could also have the unintended consequence of forcing local governments to raise their taxes to survive. In essence, the cut in revenues to the state would be made up by cities like Indianapolis trying to replace them.
No surprise Pence would try this deal. His brand of Republican leadership has brought this country to its knees in Washington. The reckless spending of George W. Bush on wars and other programs while the country continued to slice revenue planted the seeds we see now in the current debt crisis.
Now, Washington Mike aka Debt Deal Mike, wants to bring the failed Bush policies back to Indiana. Perhaps someone needs to sit down and explain to Mike Pence that Indiana is not Washington, D.C.
Hey, Mr. Pence, maybe it was better just to keep your mouth shut. It's clear you have no idea how to run a state.