Federal tax policy

Greg Capillo“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)

Citizens for Tax Justice

Center on Budget and Policy Priorities

United for a Fair Economy

Economic Policy Institute

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.

Rand Paul KyGA appearance 2011

Local black lung resolution is picking up steam

Update 12.10.2018: Johnson County became the 15th local government in Kentucky to pass a resolution calling on Senator McConnell and other members of Congress to do right by our miners and coal communities!

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Knott, Letcher, Rowan and Pike counties became the 6th, 7th, 8th, and 9th local governments in eastern Kentucky to pass a local resolution calling on members of Congress to pass several bills needed to help sick, disabled, retired and unemployed coal miners and their communities. The fiscal courts in Letcher and Knott counties took the unanimous action at their respective monthly meetings on October 15, and Pike and Rowan counties acted the next day.

Advocates say other local governments will soon follow their example. The resolution was first adopted by the City of Benham in Harlan County in September. That action was followed quickly by local governments in the cities of Jackson, Morehead and Whitesburg, and in Breathitt, Knott, Letcher, Rowan and Pike counties. 

Update 11.30.2018: The Floyd County Fiscal Court became the 10th Kentucky community to pass the resolution on October 18. Magoffin County quickly became the 11th, followed by Ohio County, in Western Kentucky, Knox County, and the City of Lynch in Harlan County.

City of Jackson Black Lung / RECLAIM / Pension Resolution

In October 2018 the City of Jackson, Kentucky in Breathitt County unanimously passed a local resolution calling on Congress to pass the RECLAIM Act, strengthen the Black Lung Disability Trust Fund, and protect the pension fund that supports miners who worked for coal companies that have since gone bankrupt.

Local Black Lung Resolution: Breathitt County

On September 26, the Breathitt County Fiscal Court unanimously approved this resolution, calling on members of Congress to support a package of Just Transition bills in Congress.

Local Resolution passed by Benham, 9.13.2018

On September 13, 2018 the City of Benham passed a local resolution calling on members of Congress to pass the RECLAIM Act, strengthen the Black Lung Disability Trust Fund, and protect pensions promised to miners and their surviving spouses.

A Kentucky conversation about ways to help pass the RECLAIM Act and strengthen the Black Lung Disability Trust Fund

You are invited to join a video conference call at 7 pm ET on Monday, August 20, to learn ways Kentuckians can help pass several bills in Congress that are needed to assist disabled, sick, and laid off coal miners and their families and communities.

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