INDIANAPOLIS — Indiana taxpayers will see their personal income tax rate reduced by 5 percent over the next four years under a budget plan agreed to by state lawmakers.
Gov. Mike Pence had sought a 10 percent cut as one of his signature campaign proposals, but lawmakers were initially cool to the idea.
Improved tax collection estimates earlier this month improved Pence’s chances in the waning days of the session.
The tax rate cut will be phased in in two steps starting Jan. 1, 2015.
Pence hailed the agreement today as a “great victory” for taxpayers.
The budget plan also calls for repealing the inheritance tax retroactive to Jan. 1 of this year.
State lawmakers must approve the budget before wrapping up their 2013 session. They expect to adjourn Friday.
— Associated Press