From the Richmond Palladium-Item:
Part of being successful at politics and leadership is knowing when an idea has no traction.
Gov. Mike Pence’s plan to cut income taxes by 10 percent is one of those ideas.
...
It’s clear Pence is waging an uphill battle on this issue. As much as we have a distaste for high taxes, now is not the time to seek such a cut.
Here’s why.
Indiana’s funds from the lease of the toll road, a deal that put $3.8 billion in the state’s coffers in 2006, will have largely been spent by 2015. Yet the demand for improved highways and maintenance will not be abated.
Where will the money come from for highways?
The third largest source of revenue for the state — gambling — is projected to see declining revenue as more casinos open in neighboring states, thus siphoning away customers from Indiana’s gaming sites. The state’s share of revenue, after disbursing shares to local governments, will decline from $567.5 million this year to $520.3 million in 2015. How will the state make up the shortfall?
Matt Greller, executive director of the Association of Cities and Towns, favors Pence’s plan to divert $347 million to a transportation fund by 2015, but more could be done. His group has not formally opposed a tax cut.
The state has essentially frozen or reduced funding for public schools and public universities under the Daniels administration. It’s simply bad policy to cut taxes while education needs go unmet.
The governor maintains state reserves will be kept at 12.5 percent or higher, assuming state revenue grows at 2.5 percent a year, leaving surpluses of $516 million in 2014 and $667 million in 2015. Should the state see an economic downturn, those surpluses could quickly evaporate.
Pence remains positive his tax cut will pass the legislature and is calling on Republicans to unify and stay positive.
He has much political experience gleaned from his tenure in Washington while serving in the House, but he’s still new to the job of leading a state. He cannot afford a defeat over a major policy initiative such as this tax cut. Part of being a leader is knowing when to move on to other important issues that can make this state stronger.
It’s time to move on to another issue.
http://www.pal-item.com/apps/pbcs.dll/article?AID=2013303250003&nclick_check=1
