Tax Cut Opposition: Busted
The Reasons Why Some Oppose the Income Tax Cut
We need to wait for the April revenue forecast to be certain we can afford the tax cut.
Answer: Indiana is operating with over $500 million in a surplus. This money will either go to taxpayers as displayed in Governor Pence’s budget proposal or it will go towards more government spending. The fact is, we can afford to do this if we practice fiscal restraint and make taxpayers a priority in the budget process.
Schools need more money and our roads are underfunded.
Answer: Governor Pence’s budget already prioritizes these critical areas of the budget. Question is, how much is enough? When government is answering that question, the answer is never good for taxpayers.
The tax cut isn’t really all that much for Hoosiers.
Answer: Tell that to those struggling to live paycheck to paycheck or a small business that is fighting through red tape and higher taxes from the feds. A family living on $50,000 would see $170 back in tax relief. This tax cut helps real people, real Hoosiers.
We must be cautious with our reserves, because of an unpredictable economy.
This is true. That is why Governor Pence’s proposed budget grows our state’s reserves, while holding the line on spending and providing a tax cut to every Hoosier taxpayer.
We have already cut taxes. We don’t need to cut anymore.
Answer: That assumes that money belongs first to government, not the taxpayer. Governor Daniels made Indiana more efficient by holding the line on spending. Any excess dollars should go back to taxpayers so they can focus on growing the economy rather than government spending. Governor Pence’s budget proposal provides over $770 million in tax relief. The House’s budget with an accelerated phase out the inheritance tax provides just about $7 million in new tax relief over the biennium. The Senate’s budget, while a step in the right direction, provides about $300 million in new relief over the next two years. It is still nearly $500 million less in tax relief over the next two years than what Governor Pence’s budget proposed.