Elected officials "save the day" with more random tax breaks, more cuts?

It sounds crazy, doesn't it?

Kentucky has a $1 billion budget deficit.  Instead of passing sound reforms to our tax and revenue system — reforms that tax policy groups and economists recommend, even and especially during a recession — our elected officials decided to pass more random and thoughtless tax breaks.  We still have a broken system, and now we'll have deeper cuts to the services and structures that we all rely on to stay safe, healthy, wealthy, and wise.

These tax breaks will cost the state a projected $23 million this year, and $84 million next year — just a hair short of what a 15% state Earned Income Tax Credit to help low and middle income wage earners would have cost. 

Here are the tax breaks they passed:

• Income tax exemption for active military personnel.

• Up to $5,000 tax credit for people buying a newly-built house.  Not an older home, but only a brand-spanking new house. 

•  A tax credit for people trading in their car to buy another car.  Instead of paying the sales tax on the full price of the newer car, they’ll pay sales tax on the difference of the new and old car.

You can read more hereat Bluegrass Politics.

What do you think?