Thursday, April 26, 2012

Gregg's Tax Cut Proposal

Democratic gubernatorial candidate John Gregg stakes out an early position to cut taxes to prevent his Republican opponent, Mike Pence, from outflanking him on the tax issue. Gregg's proposal is to eliminate the sales tax on gasoline, which he says will save the average family from $261 to $522 annually. Some may recall that former Gov. Frank O'Bannon temporarily suspended the tax after gas prices spiked in 2000 when he was running for re-election. The price of gas at that time was $1.80. Hoosiers have seen gasoline prices more recently spike to nearly $4 a gallon in keeping with President Barack Obama's desire to see gas prices go up at the pump by pursuing policies to lock up the vast oil resources under American soil to ensure our dependence on the oil owned by his true masters in the Middle East.

The tax cut would reduce state revenues by more than a half billion dollars. Gregg says he will make up for the lost revenues by cutting programs and finding savings elsewhere. Gregg's tax cut plan must infuriate liberals within the Democratic Party, who already think the state is taxing and spending too little. A spokesman for Mike Pence says that he is not opposed to the idea, but he would prefer "broad-based tax reform and the kind of energy policies that will reduce prices at the pump for Hoosiers and lessen our dependence on foreign oil." A spokesman for the Indiana Republican Party, Pete Seat, criticized Gregg for not having a concrete plan to pay for the tax cut.

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