Indiana Representative Mike Pence is already getting ideas about how to deal with taxes if he wins the Governor’s seat in 2012. He is looking at cutting the state’s income tax by reducing the corporate and personal tax rates to 3 percent. Currently the personal tax is 3.4 percent and the corporate tax is 8.5 percent. He also would like to see the end of the Indiana estate tax.
Mr. Pence said that one of the things to hinder the idea from becoming a reality is the need for the state surplus to be higher. He has yet to determine how high it would need to be to make the cuts and eliminations. The surplus garnered by Governor Daniels is currently $1.2 million.
Mr. Pence’s possible Democratic opponent, John Gregg filed his paperwork on Tuesday. He said his priority would be to give the manufacturing sector a kick by luring wind turbine companies with tax credits and quicker approval for permits.
Republican contender Jim Wallace has stated that he would like to spend another $500 million on transportation and cut $6 billion from the budget. Another of his ideas would be to give more taxing ability to local governments.
Indiana has started to look up financially as the U.S. struggles out of its recession. Taxes collected so far are at $23 million more than they expected.
Mr. Pence spoke about the state’s surplus saying “Any surplus net of adequate reserves should be used for pro-growth tax reform, not more government spending.”