KY Policy Blog

Senate Tax Plan Harms Low- and Middle-Income Kentuckians to Pay for Giveaways to Those at the Top

By Anna Baumann
November 21, 2017

Like the top-heavy tax cut plan passed in the House last week, the plan now in front of the Senate would shift taxes away from millionaires and corporations and over to low- and middle income Kentuckians while setting the stage for deep cuts to the budgetary programs and services that help Kentucky’s communities thrive.

Senate Plan Slashes Taxes at the Top, Increases Taxes for Low and Middle-Income Kentuckians

Senators will return to Capitol Hill next week after the Thanksgiving recess for a potential vote on their revised plan. According to read more

How Federal Tax Proposals Threaten Investments in Kentucky’s Congressional Districts

By Dustin Pugel
November 13, 2017

The vast majority of Kentuckians would be worse off under recent federal tax cut proposals. Far from benefiting the average Kentuckian, the plans would put fiscal pressure on already strained public programs and leave behind nearly 40 percent of children in working families from the Child Tax Credit expansion. Its tax cuts are focused on the very wealthiest, with the top 1 percent in Kentucky bringing in 40 percent of the value of the tax cuts by 2027, even while taxes would go up for more than 1 in 5 read more

5 Things to Watch for in the House Federal Tax Plan

By Anna Baumann
November 1, 2017

Tomorrow the U.S. House is expected to release a draft bill that, by all accounts, would enact large tax cuts tilted heavily toward the wealthiest Americans and largest, most profitable businesses. Based on what is already known, here’s a round-up of the research showing how it would leave most Kentuckians worse off:

Plan Will Increase the Deficit

The House plan would increase the deficit by $1.5 trillion over 10 years, possibly even more if it uses gimmicks such as dynamic scoring and phase-ins to hide the true cost. This is read more

Congressional Plan to Cut Taxes Now and Programs Later Would Harm Kentuckians

By Ashley Spalding
October 26, 2017

Now that the Senate and House have both passed budget plans that include a fast-track process for tax cuts, Congress is poised to launch the first step of a likely two-step tax and budget agenda. Step one is enacting tax cuts heavily skewed toward wealthy households and profitable corporations. Step two is paying for them later through program cuts that will deeply harm low- and middle-income Kentuckians.

Instead of trying to pass a single bill with both tax cuts and offsetting program cuts, the two-step strategy is an effort to read more

Federal Tax Cut Framework Is Designed for Millionaires

By Anna Baumann
October 4, 2017

Under the tax framework released last week by the Trump administration and Congressional leaders, the wealthiest 1 percent of Kentuckians would get 49.5 percent of the total tax cut received by people in the state, according to a new report by the Institute on Taxation and Economic Policy (ITEP). Though the proposed framework has been hailed as a tax break for the middle class, the report finds it would redistribute massive amounts of wealth upward, while raising taxes for some and worsening income inequality nationwide.

The plan’s cuts are extremely read more

5 Things Kentuckians Need to Know About Federal Budgets Being Voted on This Week

By Ashley Spalding
October 3, 2017

This week both the U.S. House and Senate are expected to vote on budget proposals that would have a devastating impact on Kentuckians. The full House will be voting on its budget resolution, which passed committee in July. The Senate will be “marking up” its recently released budget as well, a process of considering the plan in committee with the opportunity to make changes before the committee votes. In both budgets, critical investments in our state are at risk — and with Kentucky more heavily reliant on federal spending than read more

Pell Grant Cuts Would Reduce College Access and Economic Opportunity in Kentucky

By Ashley Spalding
August 25, 2017

The recent U.S. House budget resolution would slash the Pell Grant program by $75 billion over the next decade, cutting the maximum grant by $1,060 or 18 percent. Pell Grants help expand college access and economic opportunity in Kentucky, and cuts to the program would be incredibly harmful.

Pell Increases College Access in Kentucky

Pell provides need-based grants to undergraduate students who haven’t yet earned a bachelor’s degree; unlike loans, students don’t need to repay them. For the 2017-2018 school year the maximum amount for a Pell Grant is $5,920. read more

Too Many Community College Students Are Hungry or Homeless

By Celena Snoddy
August 10, 2017

While community college is typically thought of as an affordable option for earning a degree, a recent report shows this is often not the case. Too many community college students do not have consistent access to food or stable housing, which makes it difficult for them to be academically successful. These issues likely contribute to Kentucky’s low community college graduation rates as well as achievement gaps for low-income and underrepresented minority students.

The report describes findings from a survey of basic needs insecurity (i.e. food and housing) among community college read more

How Cuts to Federal Non-Defense Discretionary Funding Would Impact Kentucky

By Ashley Spalding
August 8, 2017

When Congress returns from its August break, the House is expected to vote on their plan for 2018 appropriations that includes cuts to non-defense discretionary (NDD) funding, as well as deep cuts to entitlement programs. The proposed cuts to NDD programs would harm our state’s ability to improve education, support children and families, make our communities safer and healthier and develop the workforce and economy.

As noted previously, the proposed House appropriations for NDD programs would be 17 percent below what was appropriated in 2010 after adjusting for inflation and read more

Trump Tax Plan Would Be a Windfall for Only the Wealthiest Kentuckians

By Anna Baumann
July 21, 2017

The wealthiest Kentuckians would be winners from the $4.8 trillion in federal tax cuts President Donald Trump has proposed, as shown by a new report from the Institute on Taxation and Economic Policy (ITEP). But as a poor state the tax cuts — coupled as they are with huge federal budget cuts to programs and investments that support our communities — would be an especially raw deal for Kentucky as a whole.

With a smaller share of the nation’s wealthiest people than other states, Kentucky would see relatively little of read more