From the Indinapolis Business Journal:
Incoming Indiana Gov. Mike Pence may have spent a decade as a U.S. representative. But he is a neophyte when it comes to managing the state budget—unlike legislative warhorses such as Speaker of the House Brian Bosma and Sens. David Long and Luke Kenley.
We bring up the three—who, like Pence, are Republicans— because they’ve all reacted skeptically to his push to give Hoosiers a fat tax break, a proposal that was the centerpiece of his successful gubernatorial run.
...
On the surface, Pence has a compelling argument for why lawmakers should pull the trigger on a 10-percent reduction in personal income taxes, a move that would cost $500 million a year. While crisscrossing the state in his pickup truck campaigning, he emphasized that Indiana is sitting on $2 billion in reserves, the largest cushion in its history.
But what Pence doesn’t acknowledge are the unprecedented fiscal uncertainties hanging over the state—including costs from the full phase-in of federal health care reform, and potential lost gambling revenue caused by new casino competition in Ohio and Illinois.
...
Normally, it’s admirable for a candidate to try to follow through on his pledges once he wins office. But in this case, the cool reception Pence is getting from voters and fiscal experts in the Legislature should serve as a wake-up call.
Sure, Pence would take some flak for setting aside his call for a tax cut. But unlike the long-term fiscal trouble he could cause by pressing ahead, the fallout would be fleeting.•
See the full article here:
http://www.ibj.com/article?articleId=38723
