WSJ: Governors, GOP Allies Clash Over Tax Cuts
Republican lawmakers in several states are blunting plans by GOP governors to reduce or eliminate income taxes, putting the legislators at odds with figures many in the party see as leading voices on reshaping government.
Friction over tax policy within the GOP has flared in states such as Louisiana, Nebraska, Kansas and Ohio, as Republican lawmakers raise concerns over projected revenue losses from income-tax cuts. Three of those states shelved big income-tax cuts that would be paid for by broadening the sales tax, and in Kansas, legislators will return next week to a continuing debate over the size and speed of proposed cuts.
Indiana Gov. Mike Pence, pictured in February, pushed for a cut in the state’s income-tax rate by 10% over two years but agreed to a 5% reduction over 3½ years, among other measures…
In Indiana, Mr. Pence pushed for months for a cut in the state’s income-tax rate by 10% over two years, citing the state government’s large reserves and a continued economic recovery that portended strong tax revenue. He found an ally in Americans for Prosperity, a conservative group funded by the Kansas-based Koch brothers. The state chapter has taken direct aim at Republican lawmakers in TV ads and organized door-knocking and phone campaigns to pressure lawmakers.