INDIANAPOLIS | Gov. Mike Pence enthusiastically embraced the mantra of tax simplification that participants attending his tax conference Tuesday claimed is urgently needed in Indiana.
The Republican governor and the mostly conservative tax experts were in accord that the state's tax code has too many deductions, exemptions, add-backs, carve-outs and other complexities that could be streamlined to produce positive economic results.
Pence acknowledged he doesn't yet have a plan to do that, but believes the discussions during his nine-hour Tax Competitiveness and Simplification Conference set a foundation of principles on which to build future public policy.
"A well-designed tax structure should be simple, it should be stable, it should be transparent and it should be fair. It should reward hard work, encourage investment and job growth," Pence said. "It needs to provide stable revenues for all levels of government, but also allow our families to keep as much of their hard-earned dollars as possible."
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Pence denied an assertion by state Sen. Karen Tallian, D-Ogden Dunes, that he's seeking cover for the continued shift of the state's tax burden from businesses to individuals. He insisted his focus is simplifying Indiana's tax laws and reducing tax compliance costs.
"By simplifying our tax system, we will create a more level playing field for all businesses and all taxpayers in Indiana, and we will create an environment where growth — the kind of unbridled growth that we all aspire to see — can occur for our children and grandchildren," Pence said.
House Democratic Leader Scott Pelath, D-Michigan City, wasn't buying it. He said nothing Pence talked about at the tax conference will reverse the decline in Hoosier household incomes, which fell to an average of $46,974 in 2013, from $53,482 in 2002.
"Governors typically do not assemble groups of 'thinkers' to give them answers that they do not want to hear, or to tell them that they're on the wrong track," Pelath said. "Well, they're clearly on the wrong track, because the results speak for themselves."
Pelath said all too often calls for tax simplicity result in those with the most money paying less and everyone getting underfunded schools, roads and other state services.
State Sen. Luke Kenley, R-Noblesville, the powerful chairman of the Senate Appropriations Committee, said he doesn't see a whole lot of public ire at the state's supposed tax complexity. But he promised the General Assembly will take a look at what Pence comes up with to see if it wants to do anything about it.
"He's an idea guy," Kenley said. "It's such a contrast with (former Gov.) Mitch Daniels, because Mitch put it on the table and said, 'This is the answer.' Mike puts it on the table and says ... 'You guys mull over it.'"
