Pharos-Tribune

State News

February 13, 2014

Mayors push back on Pence tax plan

Governor open to replacing local revenue with state funds.

(Continued)

But Pence hadn’t offered any details on how he’d mitigate the harm until Tuesday. Last week, he told reporters that he didn’t support the idea of the state replacing the lost revenues.

Mayors said Tuesday they’re angry at being kept in the dark about revenue replacements.

“We’re a month and half into the session, and no one has said a word about it,” Ballard said.

Democratic mayors were just as tough in their criticism as Republicans.

Goodnight said the House version of Pence’s plan — which gives counties authority to permanently roll back the business tax — could pit communities against each other. That undermines the advice of economic development experts who urge cooperation, he said.

Goodnight said he’s asked which respected economist supports eliminating the business tax.

He said he’s still waiting for an answer.

Evansville Mayor Lloyd Winnecke, a Republican, said mayors view the House and Senate bills with deep suspicion, even though neither would completely repeal the tax.

“We get the (current) bills don’t call for total elimination,” he said. “But we also get that based on prior experience, this will be first step in a total ban.”

Maureen Hayden covers the Statehouse for the CNHI newspapers in Indiana. She can be reached at maureen.hayden@indianamediagroup.com. Follow her on Twitter @MaureenHayden.

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