State Budget
KY tax reform commission nearing completion of plan
The Kentucky Blue Ribbon Commission on Tax Reform has finalized a set of recommendations about how to improve Kentucky's tax structure and raise needed revenue. The full package could raise nearly $700 million in new dollars in the first year. It also includes several items, including an Earned Income Tax Credit, that KFTC members have long supported.
Reform tax code without hurting poor, middle class
KFTC member JoAnn Schwartz has been participating in and following the conversations of the Kentucky Blue Ribbon Commission on Tax Reform. In this piece she reflects on the reasons Kentuckians can feel both hopeful and concerned as the Commission develops its final recommendations. And she urges us all to stay engaged.
Blue Ribbon Commission on Tax Reform meeting
This could be the final meeting of the commission. They are expected to complete their recommendations for changes to the tax code – including reforms to the individual income tax – and consider the cumulative effect of their actions.
New York Times interactive map of state and local business tax breaks
Kentucky spends at least $1.41 billion per year on incentive programs, according to the most recent data available. That's about 15% of the state's annual budget. According to their data, the oil, gas and coal industries are the top recipients of state and local tax breaks.
Tax commission proposals support more revenue but also more regressivity
The Blue Ribbon Commission on Tax Reform met Monday and worked through a lot more options for reforming the state’s tax code. The group is nearing completion of its work, but still has some important decisions to make.
As in recent meetings, the commissioners adopted some recommendations that would move Kentucky’s tax system closer to the principles of adequacy and elasticity (grows as the economy grows), but at the same time did that in ways that would make the system overall more regressive and thus less fair to lower and middle incomes.
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