Fair and sensible tax reform - House Bill 127
Kentucky taxes should be:
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Fair. Kentucky’s low and middle‐income families pay about 11% of their income for state and local taxes – much more than higher income families pay.
- Adequate and sustainable. Budget cuts cost jobs and services that Kentuckians depend on, and we’ve had eight rounds since 2008. Kentucky can’t afford more budget cuts.
- Helpful in improving our quality of life.
OUR GOAL: A tax system that is fair, sustainable and raises adequate revenues to ensure that we will make adequate investments to move Kentucky forward.
Kentuckians believe in strong communities and in taking care of our neighbors. Public dollars help create communities that reflect our values. Through our tax structure we make sure that we have good schools, reasonable class sizes, quality health care, clean water, and safe and protected neighborhoods.
The Kentucky Forward Plan would bring balance to our tax structure, raise about $404 million in much-needed public dollars, and help bring accountability and transparency to our state government.
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What the Kentucky Forward Plan would do:
Restore our estate tax
KFTC member
We want to stop giving tax breaks to those who don’t need them by reinstating the state estate tax. This tax excludes farms, and would only apply to those who have more than $1 million in assets, like trust funds and other inheritances. It’s not fair to give the wealthy yet another tax cut and leave everyone else behind.
Modernize our income tax
Our income tax rates are from the 1950s. This bill would replace our deductions and old rates with a stair-stepped rate structure that modestly increases with income. For the lower-income 60% of us, these changes would, on average, lower our state income tax.
Reform our sales tax
Other states tax luxury services like limo rides, armored car services, and private golf club fees. Kentucky does not tax these services. We can bring our tax structure up-to-date by closing the exemptions for luxury services.
Lower taxes for many working families with a 15% state Earned Income Tax Credit
An EITC for working parents of families earning up to about $40,000 would put more than $100 million a year back into the pockets of those working families.
Current Status
HB 127 has 8 co-sponsors and has been assigned to the House Appropriations and Revenue Committee.
Take Action
- Come out to a HB 127 Yard Sale on March 26. Click here for more information and to register to attend.
- Leave a message for your state senator or representative with the Legislative Message Line (800-372-7181, open 8 a.m. to 11 p.m. Mondays thru Thursdays, until 6 p.m.on Fridays). Encourage them to invest in education, health care, higher ed, and public safety by supporting revenue measures like HB 127 that are fair, sensible, and sustainable.
- Become a member of KFTC or donate above your yearly dues. As a grassroots organization, our strength lies in our membership. Each new member gives us more clout in Frankfort, and your donations allow us to be the most active grassroots lobbying group in the state.