Monday, December 10, 2012

Pence Must Sell Tax Plan

Gov.-Elect Mike Pence
If a tax plan falls in the General Assembly without being passed, does it make a sound?

As has been well noted, Governor-Elect Mike Pence has a plan to cut income taxes by ten percent here in Indiana across the board.  He's going to include that in the budget.  While many believe that the plan has its merits, some others wonder how he is going to pay for his plan and are less interested in making it happen.  Some of those folks are in his own party and are the movers and shakers who will make these decisions.

One of the questions I would have is where is he going to pay for this cut?  Indiana has (artificially) maintained a surplus while cutting schools and local governments down to the bone.  This surplus is now in jeopardy with this Pence plan.

Furthermore, with schools now dependent more than ever on sales tax and income tax revenue rather than the more stable property tax revenue, some of the largest districts are being challenged to do more and more with less and less.  Schools are now scratching their heads.  The loss of more state revenue would cripple them even more.

It appears that Pence's plan is meeting its own opposition from within the GOP.  Some of the more experienced state legislators are questioning whether this is the proper course of action for a state that has been teetering on the edge of this economy.

If Pence wants this plan to pass, he's going to have to work for it.  Indiana's Governor is often at the mercy of the Indiana General Assembly which holds more power than most legislatures over a Governor.  This long session could be interesting.  If Pence gets slapped back, it would be a huge embarrassment as this was something he campaigned on extensively.

The GOP Civil War begins.

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