This session, legislators have the opportunity to pass policies that would build new economic power in Kentucky. We can raise the minimum wage and enact 1 15% EITC to make sure that people earning low wages can make ends meet, and build a economic stability.
KFTC members and allies met today after the House Appropriations and Revenue Committee meeting. The committee heard the Governor’s proposed tax plan, which harkened back to the Blue Ribbon Commission's work in 2012 and 2013, and that he offered last week in the name of tax reform.
The Governor's proposal includes some good policies that are needed in Kentucky. He’s proposed an Earned Income Tax Credit at 7.5% of the federal credit. That’s just half of the EITC included in both the Kentucky Forward Plan (HB 220) and the Blue Ribbon Recommendations, which both call for a 15% EITC. A 7.5% credit would mean that families that qualify for the highest credit (earning just over the minimum wage, and with three or more children), would receive a credit of about $350. The average credit would be $171.6—not necessarily enough to qualify the measure as an anti-poverty tool, but a small step in the right direction.
Changes to the tax code can make our state and economy better or worse, depending on the goals and particulars of a proposal.To move Kentucky forward, a tax package must be built on three core principles.
Governor Beshear's Executive Budget proposal provides a small amount of additional funding to K-12 education but not enough to fully restore the impact of six years of cuts and frozen funding levels.
Some departments of the Kentucky’s Energy and Environment Cabinet will see deep cuts over the next two years, if the General Assembly approves Gov. Steve Beshear’s proposed budget.