Mitch Daniels Offers Tax Refund If Indiana Runs A Surplus
Indiana Gov. Mitch Daniels has included in his proposed budget a refund that would send money back to taxpayers if the state takes in more revenue than it needs.
Administration officials said they would run calculations each year to determine whether state reserves are more than 10 percent of spending. If they are, the extra money would be returned to taxpayers as a refundable income tax credit.
Daniels said it’s better to send the cash back to taxpayers because state government would spend extra money if it had it.
He’s right, of course… the government can always find ways to spend money, and sometimes in ways the voters didn’t approve.