Saturday, April 13, 2013

IBJ Reports Pence Travels Bumpy Road to Income Tax Cut

From the Indianapolis Business Journal:

Henry County Highway Superintendent Joe Wiley is tired of getting calls from residents whose tires are flat and cars are muddied from his crumbling roads.

Wiley has ground 30 miles of road into gravel in the last three years on the theory that it's better to have a dirty car than a ride busted by innumerable potholes. He says many more paved roads in this eastern Indiana locale could be returned to the earth if he doesn't get more funding in the state budget Indiana lawmakers are debating.

"My little world of 802 miles of road is a handful. It's embarrassing. It's frustrating. And I don't have a solution. ... I mean, there needs to be more money spent on roads," he said.

It's those broken roads that have formed the single largest pothole in freshman Gov. Mike Pence's legislative "roadmap," a first-year agenda centered around a $500 million cut in the state's personal income tax. The cut would put about $156 in the pockets of a taxpayer earning $46,000, but its political ramifications could be much greater.

Pence needs a victory on a signature item of his campaign to establish himself as a strong executive and build his resume for a potential 2016 White House run. Governors being eyed for higher office are often judged on their performance in their respective statehouses and their ability to overcome opposition from both parties; Republican Gov. Scott Walker in Wisconsin survived a bloody fight with union members and teachers, while Democratic Gov. Martin O'Malley of Maryland walked away from his seventh annual dance with the Legislature this year having raised the gas tax to pay for a multibillion-dollar transportation plan and repealed the state's death penalty.

For community officials like Wiley, passage of Pence's tax cut could represent a further erosion of funding to local governments, which was cut dramatically under former Gov. Mitch Daniels as he steered the state through the recession and built a surplus of $500 million.

Indiana lawmakers would instead like to see much of that surplus go back into the roads, and many community officials agree.

Pence has consistently said he believes his budget, which would pay out roughly $347 million for roads at the end of the next two-year budget, offers plenty for transportation.

"Making sure that we have roads and bridges that both are maintained and developed and that we are finishing what we started in this state so that we have the best infrastructure, combined with the best location in America, is something our administration strongly supports," he said. "I hope as people saw our budget, they saw a strong commitment to infrastructure."

His efforts to bring lawmakers around to his way of thinking, though, have been much bumpier than the roads he traveled in a red pickup truck for many campaign commercials.

Lawmakers tossed cold water on Pence's proposal even before he won election, saying the state had already committed to other tax cuts and that they weren't certain the still-fragile economy could support more. Instead, they said, the state needed to restore some of the cuts to education and transportation made under Daniels.
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See the full article here:                            

http://www.ibj.com/pence-travels-bumpy-road-to-income-tax-cut/PARAMS/article/40765