Blue Ribbon Commission on Tax Reform

After a series of public input hearings in summer 2012, the Blue Ribbon Commission met numerous times throughout the fall to consider options for reforming Kentucky's tax code. In mid-December, the commisison delivered a report to Gov. Beshear with 54 recommendations. Some would make Kentucky's tax system more fair, adequate, elastic, competitive and simpler (the goals of the commission) while others would move the state in the opposite direction.

The governor has indicated he would like to call a special legislative session to deal with tax reforms, as well as pension reform. That could happen as early as April 2013.

In the meantime, Rep. Jim Wayne introduced House Bill 142 to begin the discussion about comprehsnsive tax reforms. It includes many of the commission's recommendations, but differs in that it ask corporations to pay their fair share rather than further decreasing corporate taxes, and puts more emphasis on fairness and adequacy.

Download the Blue Ribbon Commission's final report.

JoAnn Schwartz's op-ed: Reform tax code without hurting poor, middle class

Report from November 19 meeting

Memo: Actions with preliminary approval (as of Nov 18)
Memo: Actions under consideration (as of Nov 18)
Memo: Actions not approved (as of Nov 18)
Revised Proposal #71: Local option food and beverage tax

Report from November 8 meeting

Actions taken at Oct 23 meeting
Analysis of tax change option #96
Clarification of Gross Value under Severance Tax addendum
EITC Advanced Payment Option
Tax Pension Income (#10) Supplement

Report from October 23 meeting.

Analysis of 95 tax change options
Followup answers from state budget office
Report on Tax Reform by Economic Consultants

Want some help framing up your comments?

We don't want to all say the same thing, but we do want to echo and stand with each other. This framework is one way to do that. Feel free to use it for your comments--online, in person, or in letters to the editor of your local paper.

I.  Who you are and what you want to see for Kentucky

• I am_____.

• I want to see _____.

• “I’m another Kentuckian for tax reforms that raise revenue and let everyone pay their fair share toward making Kentucky a great place to live and work."

II.  What's in the way

• Our current taxes are not fair because low- and middle-income Kentuckians pay about 11% of their income in state and local taxes, while the wealthiest pay about 6%. This isn’t fair.

or

• Our current tax structure is inadequate.  [Reference some of the budget cuts that are impacting your community.]

or

• We can be a more competitive state for good jobs by investing in our people and our commonwealth, with good schools, excellent higher education, and a first-class infrastructure.

• Good tax reforms must raise revenue, be fair to working families, and allow investment in our future.

III.  Good policy solutions

• Good solutions would include:

  1) closing tax loopholes for corporations,

  2) taxing the same luxury services that our surrounding states tax, and

  3) making our income tax more progressive, including a state EITC, so that we're all paying our fair share.

Thank you!