Federal tax policy
“We see a Kentucky that pays its bills and balances its budgets by accepting all the federal funds that we receive, and by raising our own state revenue in a fair and responsible way. I have seen is the impact that necessary functions of government have had on my life. We have an opportunity to build on these strengths that we’ve worked so hard for. This is the reality that we want to build on. It’s not only the right thing to do – it’s the smart thing to do. We all share a common future.”
Greg Capillo
Lexington
The impact of the federal budget in Kentucky
For every dollar Kentuckians pay in federal taxes, we get back between $1.51 and $1.82 in federal investments, depending on which study is consulted.
An excerpt from a Lexington Herald-Leader article by John Cheeves (May 16, 2010) details the federal funds that help run Kentucky and our economy. Below is a partial list, using data from the U.S. Office of Management and Budget and other government agencies:
- Funding for flood insurance – $2.1 billion a year
- Mortgage insurance – $877 million
- Crop insurance – $667 million
- Food stamps – $674 million
- Veterans disability benefits – $478 million
- Pell Grants for 137,000 of Kentucky’s college students – $182 million
- Head Start for 16,000 children – $100 million
- Eighty percent of Kentucky's Medicaid costs are paid with federal funds.
Resources
Here are some national organizations that provides lots of information and resources on federal tax policy:
Institute for Taxation and Economic Policy (including a Kentucky page)
Center on Budget and Policy Priorities
Also, our friends at the Kentucky Center for Economic Policy track some reports that examine the federal budget implications for Kentuckians.
Some of our best opportunities for achieving a better quality of life for all Kentuckians – and some of our biggest threats against it – are the federal economic policies being decided in Congress.
Kentucky’s two senators and six representatives play a prominent role in these decisions. Sen. Mitch McConnell, as the minority floor leader in the Senate, and Rep. Hal Rogers, as the chair of the House Appropriations Committee, are in very public positions of power. Sen. Rand Paul, though in his first-term, is a dominant voice in the Tea Party wing of the Republican Party. Other House members have influential committee positions.
Through tax and budget policies, they are making major decisions affecting environmental protection, access to affordable education, health and wellness services, child nutrition and many other programs and priorities that affect every Kentuckian's opportunity to succeed. And since Kentucky's tax system largely mirrors the federal tax code, these decisions may also affect Kentucky's ability to raise the revenue we need on the state level.
KFTC members are making our voices heard in Washington, D.C. on federal economic policies that impact our commonwealth.
Federal taxes on Kentucky Tonight, starring Jason Bailey. 8pm on KET
Tonight's Kentucky Tonight is about the federal budget.
Take action for tax justice today!
Today, on the 10th anniversary of the disastrous Bush-era tax cuts, a tax justice revolution is gaining steam. We know what kinds of communities we want, we see that the growing wealth gap is harmful, and we know that good solutions are on the table. If we can pay our taxes, why can't America's wealthiest individuals and richest corporations pay their fair share?
House votes on Ryan budget plan tomorrow; tell Congress what you think tonight!
Last week, Dana Beasley Brown asked you to urge your Congressional representative to support the Fairness in Taxation Act. Thank you for taking that action!
She can't speak out, so she's asking you to
As you've probably heard, President Obama and House and Senate leaders are meeting to try to come up with a budget that takes us through the end of this fiscal year, up to September. Speaker Boehner (OH) is not only not compromising on the Rep Roger's proposed cuts, which are draconian by any sensible measure, but has also been increasing the cuts as the negotiations proceed. It's not clear t
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