Pence cites regional competition for tax cut

Associated Press

Updated: Feb 7, 2013 7:19 AM

INDIANAPOLIS (AP) — Gov. Mike Pence says Indiana faces growing competition from Republican leaders in other states looking to cut income taxes.

Pence highlighted the competition Wednesday as he continues to push for a 10 percent cut in Indiana's income tax. Pence ruled out eliminating the income tax, as some Republican governors have proposed. He also says he would not eliminate Indiana's automatic tax refund in exchange for his cut.

Ohio Gov. John Kasich said this week he wanted to pay for a 20 percent cut in his state's income tax by expanding the sales tax to more services. Louisiana Gov. Bobby Jindal has floated a similar measure.

Former Gov. Mitch Daniels paid for a cap on property taxes in 2008 by raising the state sales tax to 7 percent.

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