News From Terre Haute, Indiana

Indiana Legislature

April 26, 2011

NEW: Democratic leader wants summer gas tax suspension

INDIANAPOLIS — The leader of Indiana House Democrats wants the state to suspend taxes on gasoline during the summer in a move he says would save consumers about 40 cents per gallon.

Democratic Rep. Patrick Bauer of South Bend says Republicans who control the Statehouse are trying to help the wealthy by cutting the corporate income tax. Bauer says this is a chance for the GOP to help the working class by suspending gas and sales taxes on gasoline for June, July and August.

Bauer says the move could cost the state $200 million. He wants to take that money from the state’s projected reserves of $1 billion.

Republican House Speaker Brian Bosma says the idea is a “long shot” and that the budget should include at least $1 billion in reserves.

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