INDIANAPOLIS (WISH) – The state Senate voted to cut business taxes Tuesday afternoon.
It’s what the governor wants but the Senate plan gives Mike Pence a much smaller tax cut than what he proposed.
Gov. Pence wants to eliminate the business personal property tax over time. It’s a billion dollar tax.
The state Senate plan, however, will cut business taxes by just $150-million and then launch a study of what to do next.
The tax on business equipment is a deterrent to job creation according to the governor. But the money raised by it goes to local governments and opposition from mayors has forced changes in the governor’s plan.
On the Senate floor Democrats argued that it will lead to higher property taxes for the rest of us.
“If you want to shift taxes from the businesses to our voters,” said Sen. Greg Taylor (D-Indianapolis,) “then go ahead and vote for this bill.”
“This is just a completely fiscally irresponsible bill, said Sen. Mark Stoops (D-Bloomington.) “We would be ahead if we just defeated it now.”
Nevertheless the Senate voted 33-to-15 for the scaled back proposal.
It will now go to a conference committee where lawmakers will work out the differences with a House plan passed Monday.
The governor is on record saying that meaningful cuts will take years and he just wants to get the process started.