Mike Pence is an experienced tax cutter
Donald Trump鈥檚 choice for vice president, Indiana Governor Mike Pence, has only run the state since 2013 but he鈥檚 already built a reputation as a premier tax-cutter. In just three years as governor, Pence successfully pushed proposals to cut income taxes, corporate taxes, personal property taxes, and completely eliminate the state鈥檚 inheritance tax.
When Pence took office, Indiana鈥檚 3.4 percent flat individual income tax rate was already the聽in the nation (only聽 Pennsylvania鈥檚 3.07 percent was lower). Still, in his first聽, Pence pitched a 10 percent cut as an 鈥渁ffordable鈥� way to 鈥渦nleash half a billion dollars鈥� into Indiana鈥檚 economy. The聽聽a 5 percent reduction, bringing Indiana鈥檚 tax rate down to 3.23 percent over the next two years.
The same legislation also immediately聽聽and repealed its聽. The inheritance tax, which affected estate transfers greater than $250,000, was already scheduled to phase-out by 2022, but Pence and the legislature repealed the tax for the estates of all persons聽.
Pence proposed more tax cuts in 2014. That year, he signed聽聽that will gradually lower Indiana鈥檚 corporate income tax rate from 6.5 percent in 2015 to 4.9 percent in 2021. The legislation also allows Indiana counties to trim personal property taxes for businesses鈥攁lthough Pence wanted to repeal the tax. He聽聽both proposals as ways to make Indiana more competitive with neighboring states, though the relationships between聽聽or even tax 聽聽is mixed.听
Pence did not secure further tax cuts in 2015, but he聽听迟丑补迟听聽for taxing the sale of certain manufacturing equipment. This聽聽brought Indiana more in line with how other states treat these business-to-business sales. Pence聽聽completely exempting such sales from tax, but the legislature passed the more modest change because of revenue concerns.
Unlike some other governors, Pence maintained Indiana鈥檚聽聽throughout his three years of tax cutting鈥攎ostly 聽by keeping his聽聽below inflation.
Finally, the Trump campaign is sure to tout Indiana鈥檚 economic record during Pence鈥檚 tenure. Indeed, since Pence took office in January 2013, Indiana鈥檚 unemployment rate has fallen from 8.4 percent to 5 percent. But a聽鈥攅specially in three short years. Besides,聽聽for decades, and did the same during Pence鈥檚 term, when the national rate fell from 8.3 percent to 4.7 percent.
That鈥檚 why it鈥檚 always better to examine what a governor can control: policy decisions. And Pence will win kudos from conservatives as a successful tax-cutter who kept his budget balanced with offsetting spending reductions.听
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