Tagged: Indiana state budget

Indiana taxpayers will see their personal income tax rate reduced by 5 percent over the next four years under a budget plan agreed to by a conference committee of state lawmakers.

Gov. Mike Pence had sought a 10 percent cut as one of his signature campaign proposals, but lawmakers were initially cool to the idea.

Improved tax collection estimates earlier this month improved Pence's chances in the waning days of the session.

The tax rate cut will be phased in in two steps starting Jan. 1, 2015.

Indiana House Republicans are blocking a vote on Gov. Mike Pence's tax cut with a promise to take up the issue in April.

Republicans voted along party lines to keep House Democrats from forcing a vote on the tax cut Thursday. The effort came as lawmakers advanced a $30 billion biennial budget that swaps the cut for more spending on schools and roads.

Indiana House Republicans are advancing a $30 billion budget that trades Gov. Mike Pence's priority tax cut for more spending on roads and schools.

The House Ways and Means Committee voted 16-7 today  along party lines to advance the budget.

The Republican governor has dug in on his proposal to cut the state's personal income tax and continues to say this week that he is "disappointed" in the House GOP changes.

The proposal now moves to the full House, where Democrats hope to force a vote on Pence's tax cut.

A state budget plan put forth by Indiana House Republicans would swap a $500 million tax cut sought by Gov. Mike Pence for new spending on education and transportation.

Details of the two-year budget proposal released today  would increase K through12 funding by 2 percent the first year and 1 percent the second year.