INDIANAPOLIS — Indiana Gov. Mike Pence said Tuesday that his administration is looking to include a simplification of the state’s tax code as part of his agenda for next year’s legislative session.
Pence, in speaking at a summit he hosted in Indianapolis that brought together nearly 200 local and national tax experts, said the event was an “idea factory.” Pence said he plans to take those ideas to lawmakers to guide future legislation on lessening the burden of tax compliance for Hoosiers and simplifying the state’s overall tax structure.
“The ideas you are seeing unpacked today from a diverse group of experts is that the next chapter of tax reform in Indiana is not about reducing taxes, but it’s about simplifying taxes on individuals and businesses in a way that will invite more investment and more jobs and more opportunities for Hoosiers,” Pence said.
The Republican governor said since 1993, Indiana’s individual tax return form has quintupled in size and cited IRS data that showed the average state resident spends about 12 hours and $210 to prepare their federal tax forms.
Pence said his administration is not settled on a particular proposal as of yet, but said he would oppose any effort to raise taxes. Pence said he wanted any product to be pro-growth and fair to all Hoosiers.
“I am interested in ways we can reform taxes and simplify taxes in ways that will make Indiana more attractive for investment and growth,” Pence said. “I think we assembled a broad array of men and women with expert background on tax policy to help us do just that.”
The daylong summit featured panels exploring how the state can succeed at tax simplification and on the state’s income, sales and corporate taxes. It also featured a speech from Arthur Laffer, a former adviser to President Ronald Reagan, that Pence introduced as his favorite economist.
Laffer said Indiana should strive for a low rate, broad-based tax, and to get rid of the loopholes in the system.
“Mike, seriously and all joking aside, we are counting on you, and the people in this state are counting on you and the people in this country,” Laffer said to Pence as he addressed the summit. “Because the benefits you do for Hoosiers spread to every other state as well.”
The panels got into the nitty-gritty details of the state’s tax code. At the panel on the individual income tax, Dave McDaniel with the Indiana CPA Society said one tax that can add to the complexity of the state’s tax code is county income taxes. He said the tax being based where a person lives the first day of the year can be confusing, and on the compliance end, employers can get the county wrong or employees will forget to tell their employer if they move.
The summit was not open to the public but was available by webcast. House Democratic Leader Scott Pelath said the working public was “notably absent” from the summit.
“Looking at the roster of participants, I’m not sure anyone should be surprised that the middle class has been left out,” Pelath said. “It’s far better for them to lecture others than to get out into neighborhoods and communities to see the impact of their policies.”