Governor Proposes Temporary Tax Increase

Governor Daniels proposed a tax increase during his State of the State speech last night… Hear Governor Daniels talk about his proposal for a one-year, one-percent income tax increase for Hoosiers who make more than $100,000 per year. Daniels says that extra income would allow the state to balance its budget within a year. Daniels says he’ll veto any bill that would raise general taxes on Hoosiers and he’ll veto any bill that would extend the temporary increase he proposed last night. Daniels also says state government must drastically reduce spending. He promised to eliminate any program that has outlived its usefulness. Daniels also says the cost of Medicaid is growing at 10 percent per year, so that program must see some immediate changes in eligibility, benefits and payments to providers. Daniels announced a 120-day moratorium on bond issues for new school building projects. Daniels says the state will develop new guidelines regarding building size, cost and the ratio of academic to non-academic construction, with the goal of putting instruction before construction. Read the complete text of Daniels' State of the State Address.