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The question in the Statehouse now: Who will blink by
April 29, the deadline for passing a new budget? The governor or the
legislature?
Pence has one piece of leverage he could turn to: the
veto.
Asked Wednesday whether he would veto a budget that
doesn’t give that 10 percent cut, Pence did not take that possibility off the
table.
“I just think it’s important that we take this moment in
the life of our state to enact the kind of tax relief that will make Indiana
more competitive and attract more investment and more jobs to the Hoosier
state,” Pence said. “And I do believe that a significant 10 percent reduction
in the personal income tax rate is an important element in that.”
Still, Pence left some wiggle room, saying “the details
of how we do that and when that’s phased in and how that happens we’re all
talking through.”
His budget proposal would phase in the 10 percent tax
over two years. But lawmakers could phase it in over a longer period to meet
their concerns while giving Pence a legislative victory.
The budget version passed by the House, though, left the
income tax cut out, preferring instead to speed the phase-out of the
inheritance tax. The Senate version calls for a 3 percent reduction in income
taxes, in addition to eliminating inheritance taxes retroactively to Jan. 1.
The governor made what he called his “closing argument”
for the tax cut to the Greater Indianapolis Chamber of Commerce, the same group
that had heard his opening argument for it last July 31, when Pence made it a
centerpiece of his campaign for governor.
In fact, the normally low-key Pence thumped the lectern
at one point with his finger to emphasize his belief that a 10 percent income
tax cut is a jobs driver Indiana needs to compete.
Talking to reporters after the speech, Pence said the
revenue forecast released Tuesday — which showed an improving economy with $290
million more in state revenues than originally predicted — gives the green
light to crafting a new two-year state budget that increases funding for
schools and roads and gives “a blend of tax relief.”
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