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

Hal Rogers and the House budget proposal

Rep. Hal Rogers represents Kentucky's 5th Congressional District, which runs throughhal rogers part of southeast Kentucky. Rep. Rogers is also the new chair of the House Appropriations and Revenue Committee.

Hal Rogers, President Obama and the federal budget

There are two federal budgeting processes going on at the same time, both ramped up this week, and the swirl of numbers and dates can be confusing. 

As income inequality grows, take action to strengthen the federal estate tax

United for a Fair Economy, a national organization and ally of KFTC, has issued a call to action around the federal estate tax. 

The strength of the federal estate tax is important to Kentucky. Kentucky used to get a portion of the revenue generated by the estate tax. This revenue disappeared in 2005, as the estate tax was phased out under President Bush. 

Page

Subscribe to Tags: Federal tax policy