Governor and Legislature Agree on 5% Income Tax Cut Created by kblakeslee on 4/25/2013 12:40:39 PM
INDIANA (WOWO): Today Governor Mike Pence issued the following statement in regards to the 5 percent income tax cut and inheritance tax repeal for Hoosier taxpayers:
“Today 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. 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.”
INDIANAPOLIS (AP) _ Indiana taxpayers will see their personal income tax rate reduced by 5 percent over the next four years under a budget plan agreed to by state lawmakers.
Gov. Mike Pence had sought a 10 percent cut as one of his signature campaign proposals, but lawmakers were initially cool to the idea.
Improved tax collection estimates earlier this month improved Pence's chances in the waning days of the session.
The tax rate cut will be phased in in two steps starting Jan. 1, 2015.
Pence hailed the agreement Thursday as a ``great victory'' for taxpayers.
The budget plan also calls for repealing the inheritance tax retroactive to Jan. 1 of this year.
State lawmakers must approve the budget before wrapping up their 2013 session. They expect to adjourn Friday.