Tax Questions With Indiana Democrat Gubernatorial Candidate John Gregg

The Bloomberg BNA Tax Management Weekly State Tax Report filters through current state developments and analyzes those critical to multistate tax planning.

Tax Policy

Bloomberg BNA recently posed a series of tax-centric questions to the Republican and Democrat candidates for governor in Indiana. Below are the responses from Democrat candidate John Gregg.

John Gregg

Interview by Mark Wolski

John Gregg is a former speaker of the Indiana House. He served in the House 10 years before retiring from public office in 2002. He tried to return to state government in 2012, but lost the governorship to Mike Pence (R). Since being out of office, Gregg has worked as an attorney and served as interim president of Vincennes University in Indiana. He lives in Sandborn with his wife, Lisa. They have three adult children.

Editor's Note: Gregg didn't provide answers to Bloomberg BNA's tax questionnaire that sought his opinion related to priorities on state and local tax issues, hurdles in enacting his tax policy priorities, challenges in the tax and revenue realm facing the state in light of market conditions and whether the state’s tax regime is properly balanced. The following responses were developed from materials on his campaign website and other news reports.

Bloomberg BNA:

What are your priorities related to state and local tax, if elected?

Gregg:

Gregg has said he wants to make the Indiana venture capital tax credit available to out-of-state investors. He also wants to make the tax credit transferable to other Hoosier businesses.

He has also said he is open to increasing the tax credit. It is currently 20 percent, but neighboring states offer venture capital tax credits of 40 percent or more. He said he wants to examine other states’ credits before deciding on how large an increase to recommend to the Indiana General Assembly.

Another priority for Gregg is reviewing the tax structure for small businesses in the state. Such a review hasn't been performed since 1999, he said. His website said large businesses in Indiana aren't required to pay local income taxes, but small businesses are. By paying both local and state income taxes, he said, small businesses are paying a higher income tax rate than large businesses.

Gregg has also called for the creation of a tax fraud task force. He said Indiana is losing more than $400 million in tax revenue each year because of fraud and the misclassification of workers.

Another idea Gregg has for local taxes is to reduce the restrictions placed on them by the state. The state limits what local governments can do with their tax revenue, he said. Lifting the restrictions will allow local governments to spend revenues to attract business, invest in infrastructure or address local issues, he said.

To contact the reporter on this story: Mark Wolski in St. Paul, Minn. at MWolski@bna.com

To contact the editor responsible for this story: Ryan C. Tuck at rtuck@bna.com

Copyright © 2016 Tax Management Inc. All Rights Reserved.