It looks like Governor Mike Pence will get his income tax cut but it will be about half of what he wanted, it will be fazed in over 4 years and it won’t start for nearly two years.
The deal between the Governor and the state legislature provides for the first cut to take place Jan. 1, 2015.
The tax rate would drop from 3.4 percent to 3.3 percent.
The next cut would happen Jan. 1, 2017 when the 3.3 percent tax would drop to 3.23 percent.
The cuts would be noticeable on the first paycheck of 2015.
The inheritance tax would be eliminated starting in 2017.
The proposed new budget also spends around $330 million dollars more on education over the next two years and it increases spending on roads by $400 million plus it invests another $400 million for major highway expansion.
The new deal will pay off loans incurred by charter schools that have failed and gone out of business.