Matthew Empson Welsh (September 15, 1912 – May 28, 1995) was an American politician who was the 41st governor of Indiana and a member of the Democratic Party, serving from 1961 to 1965. His term as governor saw a major increase in statewide taxation, including the first state sales tax, and the passage of several important civil rights bills, making Indiana one of the most friendly states to ethnic and religious minorities at that time. His tax hikes led to a near-tax revolt in the state, and people began writing "Indiana—Land of Taxes" on their license plates, at entry points into the state, in stores, and other public places. The situation killed any chance he had seeking higher office and earned him the moniker "Sales Tax Matt". Despite numerous reforms and his popularity within the Democratic Party, he was defeated when he ran for governor again in 1972. After leaving office, he served as chairman of the Indiana Democratic Party, as a member of the Democratic National Committee from 1964 until 1968, and as a federal commissioner on the International Joint Commission from 1966 until 1970. Throughout his life, Welsh was known for his personal motto, "It doesn't cost you anything to be a gentleman." After his retirement in 1972, he returned to Indianapolis, where he remained until his death in 1995.
Early life
Family and background
Matthew Welsh was born on September 15, 1912, in Detroit, Michigan, the son of Matthew William and Inez Empson Welsh. Both of his parents were natives of Jackson County, Indiana and had only recently moved to Detroit where his father took a job as a secretary and legal counsel for an insurance company. He had three younger siblings, Mary, John and Margaret. At the outbreak of World War I, his father was hired as an industrial expediter by the federal government and began traveling often. Welsh and his mother moved to Brownstown, Indiana, where her parents lived. After the war ended, Welsh's father joined them in Brownstown, where he became the president of a local bank. In 1926, the family moved again to Vincennes, where Welsh's father took a new job as president of an investment firm.
Welsh's father had been active in local Democratic politics for many years, and from an early age, Welsh was also interested in politics. He attended public school in Vincennes and graduated from Lincoln High School in 1930. He enrolled in the Wharton School at the University of Pennsylvania, graduating in 1934. He enrolled in Indiana University School of Law the same year. While there, he coauthored an article with Law Professor (and future IU Dean) Frank Horack, describing Indiana's practice of enacting special legislation as a "twilight zone" of Indiana law. Welsh met Mary Virginia Homann while attending IU, and the couple began a relationship. After two years at IU, Welsh transferred to the University of Chicago Law School, where he graduated with a degree in law in 1937. The same year, he was married to Mary and the couple settled in Vincennes.
Politics and World War II
In Vincennes, Welsh opened a law practice and purchased a new home. He and his wife had twin daughters, Kathryn and Janet, in 1942. Welsh became involved in politics and ran for a seat in the Indiana House of Representatives and won in the 1940 election. He was re-elected to his seat in 1942, but resigned after the first session of the General Assembly to enlist in the navy, as World War II broke out. Welsh saw little action during the war and spend most of it on patrol of the American coastline. In 1946, he was discharged from the navy and returned home to resume practicing law. In 1950, President Harry Truman appointed him to serve as U.S. attorney for the Southern District of Indiana, a position he held until resigning in 1952 to return to his law practice.
Welsh had determined not to reenter politics but in 1954 he changed his mind and ran for the Indiana Senate, winning the election. As the General Assembly was dominated by the Republican Party at that time, Welsh had very little impact during his time as senator. In 1956, his name was entered as a candidate for governorship at the State Democratic Convention, but he was narrowly defeated in the vote by Ralph Tucker, the mayor of Terre Haute. In 1957, he became the minority leader in the state senate, a position he held until 1959.