Republican Legislative Leaders Leary Of Price Tag On Governor's Tax Proposal

Republican legislative leaders say the potential price tag of one aspect of Gov. 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 and $240 million a 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 said.

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