Governor tax cut dropped from House budget

INDIANAPOLIS (WISH) - Governor Mike Pence's proposed 10 percent cut in the state income tax has already been dropped from the House budget in the General Assembly.

It was the subject of a public hearing in a state Senate committee Tuesday morning. The Tax and Fiscal Policy committee heard the sales pitch for lower taxes but no vote was taken.

Sen. Jim Buck (R-Kokomo) suggested a bigger tax cut of .4 percent that would be phased in over four years. 

"I submit to you," Buck said. "It's high time we start lowering the income tax on our friends, family and neighbors and the small employer that we all admire for their tenacity in these hard times."

Sen. Mike Delph (R-Carmel) authored a bill that includes the governor's proposed cut of .34 percent over two years. The current state income tax rate is 3.4 percent. 

"Failing to cut our income tax rate, particularly when we can afford it," Delph said, "We will make it easier for other states to attract jobs and investment that should be happening here in the state of Indiana."

A tax cut vote in the Senate will likely take place only if the tax cut is restored in the state budget proposal near the end of the legislative session in April.