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Last updated on Thursday, April 26, 2012
(INDIANAPOLIS) - John Gregg, Democratic candidate for governor, proposed Wednesday eliminating the state sales tax on gasoline, a move he said would put more money in the pockets of Hoosiers.
The gas tax plan is a perennial proposal of legislative Democrats, but Gregg's plan would go farther by eliminating the sales tax on gasoline permanently, not suspending it temporarily or reducing it.
Gregg said he's convinced the plan would help Hoosiers who are hurting economically, and he's convinced the state can afford it.
The Democrat said his plan would save the average Indiana family between $260 to $520 annually, depending on how much they drive.
Gregg said his plan is better than the $178 they would get from Republican candidate Mike Pence's plan to reduce the state income tax, a plan Gregg said would primarily benefit businesses.
"I am convinced it will fire up our economic engine and put more money in the pockets of Hoosiers, all Hoosiers, low income, upper income and in between," Gregg said. "I want to do everything I can as governor to lower the price of gasoline at the pump for Hoosiers."
Gregg's plan would cost the state $540 million a year, but he said he is convinced he could save more than that by instituting annual budget performance audits.
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