House Democrats Unveil Road Funding Plan

Feb 6, 2017

House Democrats unveiled their road funding plan, billing it “No New Taxes.”

The House Republican roads plan uses fuel tax increases, new fees and tolling.

The House Democrats’ plan seeks to generate at least $800 million a year without those methods. Instead, House Minority Leader Rep. Scott Pelath (D-Michigan City) says his caucus’ plan would pull the money out of corporate taxes – halting cuts that are scheduled to take place in the next couple of years.

“We already have a great business tax climate here in Indiana,” Pelath says. “That great business tax climate is going to continue but we’re going to prioritize our roads and bridges.”

House Speaker Rep. Brian Bosma (R-Indianapolis) says to halt the corporate tax cuts would be “misguided.”

“That is what’s causing these employers to come to Indiana, many expanding greatly their facilities announced in the last year, based on the prospect of the phased-in tax cuts that we’ve put in place through 2021,” Bosma says.

The Democratic proposal also relies on using annual state agency budget cuts called reversions, though the plan estimates those cuts in larger amounts than the state has seen in recent years.