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Bosma, Long say Pence Tax Proposal Could Be Too Costly


Republican legislative leaders say the potential price tag of one aspect of Governor Mike Pence’s tax simplification proposal could be too costly to support.

Among the many provisions of Pence’s bill is a change to a sales tax exemption for Hoosier businesses. 

Initial estimates by the governor’s administration put the cost around $35 million. But LSA, the legislature’s bipartisan research agency, calculates a revenue loss of anywhere between $130 million and $240 million per year. 

Senate President Pro Tem David Long says LSA and administration officials will discuss that major difference.

“We’ll go back, we’ll look at what the governor’s people had, we’ll share that and say, ‘Are you disagreeing with us again?’  You take another look at it,” Long said. “If LSA comes back and says, ‘No, we’re very confident in these numbers,’ we’re going to go with those numbers.”

Speaker Brian Bosma says while he supports tax simplification, Pence’s proposal looks to be a major tax cut.

“At a time when we’re looking to invest in education and some other critical investments,” Bosma added.

Bosma says if LSA’s estimates are correct, that provision in Pence’s bill is unlikely to survive this session.

Brandon Smith is excited to be working for public radio in Indiana. He has previously worked in public radio as a reporter and anchor in mid-Missouri for KBIA Radio out of Columbia. Prior to that, he worked for WSPY Radio in Plano, Illinois as a show host, reporter, producer and anchor. His first job in radio was in another state capitol, in Jefferson City, Missouri, as a reporter for three radio stations around Missouri. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.