In a July press conference announcing a new budget surplus, Gov. Mike Pence raised the possibility of additional small business tax cuts over the next fiscal year.
Indiana closed its 2015 books with a $210 million surplus and with a hefty rainy day reserve of $2.14 billion.
“We’ve closed the books on our fiscal year and the results are encouraging,” Pence said. “Over the last two years, we invested in Hoosier priorities while living within our means. From increases in funding for infrastructure, child protection, and education to enacting the largest state tax cut in Indiana history, we put Hoosiers and their families first.”
Pence told reporters he may want to use the state’s strong fiscal position to consider a small business tax cut.
Meanwhile, he may also use some of the state’s reserves to pay back a U.S. federal loan years early, eliminating the federal tax penalty currently leveled against all of Indiana’s small business owners.
“Any chance I have to let Hoosiers keep more of what they earned is always a priority for this administration,” Pence said. “And frankly with near record budget reserves, with revenues coming in strongly, we’re giving some consideration to some tax relief for job creators that could be facilitated by paying off the state’s obligation to the unemployment trust fund early.”
