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IN Senate budget proposal passes committee

The Indiana Senate budget proposal unveiled Thursday does include an income tax cut, but not nearly as large as Governor Mike Pence proposed. 

Last year, then-congressman Mike Pence made a 10% income tax cut proposal the centerpiece of his campaign.  But when House Republicans presented their budget earlier this session, Governor Pence’s tax cut was nowhere to be found.  Senate Republicans have added a 3% cut to their budget.

Pence says the Senate proposal shows he and the General Assembly are beginning to come together…but he adds there’s still plenty of negotiation left this session.

“I welcome the addition of a reduction in personal income taxes to the framework of this budget and I look forward to productive and energetic discussions in the weeks ahead.”

Senate President Pro Tem David Long (R-Fort Wayne) says the total tax cut package in the Senate budget – including elimination of the state’s inheritance tax, continued reduction of the corporate income tax rate and the three percent personal income tax cut – totals around $500 million a year in tax relief - roughly equal to Pence’s proposed cut.

“While not disagreeing with the governor that an income tax cut should be part of the package, we think including other tax cuts as well is a better way to go.”

The proposed budget passed the Appropriations Committee along party lines and now heads to the Senate floor.

Brandon Smith is excited to be working for public radio in Indiana. He has previously worked in public radio as a reporter and anchor in mid-Missouri for KBIA Radio out of Columbia. Prior to that, he worked for WSPY Radio in Plano, Illinois as a show host, reporter, producer and anchor. His first job in radio was in another state capitol, in Jefferson City, Missouri, as a reporter for three radio stations around Missouri. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.
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