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Hoosier GOP Pushes for Sequester Coats, Young, Rokita Insist on Cuts; but Can They Hold the Line After March 1? by BRIAN A

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Hoosier GOP Pushes for Sequester Coats, Young, Rokita Insist on Cuts; but Can They Hold the Line After March 1? by BRIAN A V18, N25 Thursday, Feb. 21, 2013 Hoosier GOP pushes for sequester Coats, Young, Rokita insist on cuts; but can they hold the line after March 1? By BRIAN A. HOWEY INDIANAPOLIS – Hoosier Democrats like U.S. Rep. Pete Visclosky view the next eight days heading into the unprecedented $85 billion sequester as an exercise of “mindless cuts.” For Republicans such as U.S. Sen. Dan Coats and U.S. Rep. Todd Young, March 1 is an inevitable reality. “Many of my colleagues in the House and the Senate find themselves at the point where across-the-board cuts are sub-optimal, to say the least, as opposed to cutting spend- ing,” Young told HPI Wednesday. “We also feel resigned to the fact that we’re not getting any cooperation from the administration in address- ing our spending challenges. This administra- U.S. Sen. Dan Coats speaking from the Senate floor imploring spending cuts. tion isn’t producing a budget. We don’t feel like He and several of his Indiana House colleagues believe that sequestration is we have an honest broker.” inevitable. “So I believe, tragically, this sequester will go into effect on March 1. I just haven’t Speaking in the Indiana Senate Monday, Coats seen indications that the President giving his campaign said he sees the sequester as the point where someone in speeches around the country is prepared to get as serious as he should.” Continued on page 3 Gov. Pence’s risky tax path By BRIAN A. HOWEY INDIANAPOLIS – Gov. Mike Pence delivered the keynote address to the Hamilton County Republican Lincoln Day dinner Tuesday night and it came off like one of his ‘‘Joe Donnelly is the general of standard stump speeches of the 2012 campaign. the party. I think it’s important The reaction from these for us to support the senator. I’ll folks in one of the most Republican counties in the U.S. of A. was instruc- use all the influence I have to get tive. When Pence broached his 10% income tax cut – which had been left votes for John Zody .” out of the House Republican budget - Lake County Chairman Tom McDermott during the Ways & Means Committee vote the day before – there was polite HOWEY Politics Indiana Page 2 Weekly Briefing on Indiana Politics Thursday, Feb. 21, 2013 applause. But when he talked about strongly balanced spread sheets – is the creation of regional vocational the very reason that Bosma, Long and councils where business and industry Kenley have balked at the income tax would work with local school systems cut. They’re not so worried about the www.HoweyPolitics.com to create “skills gap” curriculum, the biennial budget that’s in the works, response was, according to Chuck but future ones if the economy either Ford, “forceful support.” limps along or tanks. With the con- Howey Politics Ford, who at one time headed gressional sequester looking more Indiana the Hamilton County Tea Party, ex- and more likely, and the long-feared is a non-partisan newsletter plained of the Pence tax cut, “Republi- double-dip recession lurking in the based in Indianapolis and cans here can take it or leave it. If the background, Bosma constantly talks Nashville, Ind. It was founded revenues in April come in positively, about the $1 billion surplus of 1998 good. But if not, OK. They can take it turning into a billion dollar deficit just in 1994 in Fort Wayne. or leave it.” a few short years later. It is published by This analysis mirrored a Fiscal and social conservatives WWWHowey Media, LLC question HPI posed to Pence just a like Sens. Mike Delph and Jim Banks 405 Massachusetts Ave, few days before he became Indiana’s have risen to defend the Pence tax Suite 300 50th governor. The vocational educa- cut, but that brings into question their tion package, the reasoning went, is own longer term fiscal stewardship. Indianapolis, IN 46204 poised to get wide bipartisan support And beyond them, there is virtually no and would make a great “No. 1 prior- one else championing Pence’s tax cut. Brian A. Howey, Publisher ity.” The income tax cut will be held The Indiana Manufacturers Associa- Mark Schoeff Jr., Washington hostage to the April revenue forecast tion is supporting the cut, but it comes Jack E. Howey, editor and had gotten a chilly response from with the phrase “guarded support,” Speaker Brian Bosma, Senate Presi- which is hardly a clarion call. The Indi- dent David Long and Senate budge- ana Chamber is not on board. Subscriptions teers Luke Kenley and Brandt Hersh- The Public Opinion Strate- $599 annually man. gies Poll conducted for the Indiana 'Call Adrian France A number of prominent Realtors that HPI published two weeks Republicans we’ve talked with – all ago, and another internal poll we 812.455.4070 or email having great affection for the new were shown on Monday, were virtually [email protected] governor – were saying similar things. identical. Ask Hoosiers if they want an But Pence was sticking to his income tax cut, and they’ll say “Sure, Contact HPI guns in mid-January and all the way to why not?” to the tune of 67%. Asked www.howeypolitics.com Tuesday night in Carmel. for priorities on issues, the tax cut “We need to make sure we falls to the back of the pack, its sup- [email protected] pass an honestly balanced budget, port statistically chopped in half. The 'Howey’s Cabin: 812.988.6520 make sure we have reserves that will internal political poll we were privy to 'Howey’s cell: 317.506.0883 send a message across the country showed Hoosiers far more interested 'Washington: 202-256-5822 and the world that Indiana has a in funding public schools. strong balance sheet,” Pence told me This resolute Pence stance on 'Business Office:812.455.4070 in January. “It is of the first impor- his tax cut is now positioning him – tance. But next I think we have to and any 2016 presidential aspirations © 2013, Howey Politics Indiana. lean into the fight to make Indiana that depend on him getting out of the All rights reserved. Photocopy- more attractive for investment by busi- gate strongly here –for a hard fall, ing, Internet forwarding, fax- nesses that are here and businesses with legislative Republicans seeking to ing or reproducing in any form, which want to come here. I truly restore themselves to an alpha posi- believe that lowering taxes and im- tion after eight years of subservience whole or part, is a violation of proving the quality of our work force to Gov. Mitch Daniels. federal law without permission represent two great opportunities to Last Friday, when the House from the publisher. v do just that.” GOP budget was unveiled, the el- The first part of his state- ephant everyone saw on the table ment – honestly balanced budgets and rolled out its trunk and delivered the HOWEY Politics Indiana Page 3 Weekly Briefing on Indiana Politics Thursday, Feb. 21, 2013 expected message: No Pence tax cut. Bosma and Long had But Bosma and others are deeply skeptical that a been telegraphing that message since the Chamber legisla- 10% income tax cut for someone making $500,000 re- tive preview just after the election. sulting in a $1,071 tax savings (further diminished by not “I am very disappointed in the House budget pro- having the federal tax write-off) will create any jobs. For posal,” Pence was left to say on Friday morning. “Despite most Hoosiers, it will put $100 or so in their wallets, good having the largest budget surplus in for a tank of gas, a couple of bags of groceries or history, this House budget increases a Friday night pizza dinner. spending without giving hardwork- “I do know people are disappointed,” Ways ing Hoosiers one cent of new tax & Means Chairman Tim Brown told the Evans- relief. As our administration’s budget ville Courier & Press. “Not everyone can have clearly showed, we can afford to do everything they needed, or wanted, or desired.” both. Indiana can fund our priori- That quote conjured the old line by then- ties, including increases for roads White House Budget Director Daniels having the and schools, and reduce the person- Rolling Stones’ “You Can’t Always Get What You al income tax. Since we can reduce Want” playing for those put on hold at OMB. taxes on every Hoosier, we should.” The other wild card is the sequester in “By leaving income tax Washington, which could throw another layer relief out this early in the process, of uncertainty in the mix. Or as Brown said on this House budget proposal does WIBC Wednesday, two out of every three Na- Gov. Pence chats with former Gov. not contain the kind of balanced tional Guard dollars comes from Washington, as Kernan in South Bend Wednesday. approach that will create jobs and well as millions in road funding. (South Bend Tribune Photo) opportunities for Hoosiers,” Pence Pence backers note that Gov. Daniels said. “With so many hurting in this – in his rookie year of 2005 – didn’t get his one- economy, Hoosiers deserve better. Indiana recently cut year, 1% tax hike on the wealthiest 1 percent. But in the taxes for businesses and estates. It’s time for average Hoo- shrewd tactical mind of that governor, the 1% tax hike was siers to get a break.” a poker chip, a throw-away. It wasn’t his “top priority” and Pence is beginning to take the message out on he got just about everything else he was seeking that year.
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