Tax reform is a hot topic in Kentucky this week, and KFTC members are featured

Today, a panel of economists released their slate of options to the Blue Ribbon Tax Reform Commission. Here's an article from The Courier-Journal and another from the Lexington Herald-Leader about the options. (The economists did not posit these as "recommendations," but just short of it, as options that could be part of the commission's recommedations.)

There's a lot of information to digest – the economists' report is more than 150 page – but some of the notable points:

• While the economists urged for overall progressivity and an awareness of fairness, they also included the option to tax food as part of an overall recommendation to broaden Kentucky's tax base. They urged an accompanying credit for low-income Kentuckians, but even so there are better ways to raise $484 million.
• The economists included corporate tax reforms. They fall short of Combined Reporting, which the economists did not address, despite votes of support for Combined Reporting from several public input meetings.  (Twenty-four other states have Combined Reporting, which stops large corporations from hiding income in states where it can't be taxed.)
• The economists included a state Earned Income Tax Credit. The percentage of the federal credit wasn't included in the presentation.
• The economists included the expansion of the sales tax to selected services. This is good. The list is more expansive than the luxury services in KFTC's Kentucky Forward Plan, including services like car repairs and appliance repair, but it's a starting point.
• The economists included fixing frozen property taxes, which would be a progressive change.
  
  

We'll offer more analysis as we can!

And, earlier this week, there was a big feature in The Courier-Journal by Tom Loftus on Kentucky taxes and the process of reforming our state taxes.  Check it out, not only for lots of great information about Kentucky's taxes, tax expenditures, and tax exemptions, but also for the KFTC members featured in the report!  Patrick King from Shelby County and Molly Tevis Orona (pictued above) discussing the need for a more progressive income tax, including a state Earned Income Tax Credit. Both Patrick and Molly offered statements at the Jefferson County Blue Ribbon Commission Public Input Meeting, and we're glad that their messages are getting good coverage.