KY Policy Blog

Massive New Federal Tax Cuts for the Wealthy Should Be a Resource for Kentucky’s Budget

By Jason Bailey
January 3, 2018

Kentucky is facing a major gap in its next two-year state budget that could mean unprecedented cuts to education and other services. But the General Assembly could look to the money coming from huge new federal tax cuts for the wealthy to help bridge that gap.

The richest 20 percent of Kentuckians are expected to receive $2.1 billion in federal tax cuts in 2019 because of the bill that passed Congress and was signed into law by President Donald Trump in December. Those high-income individuals will receive 69 percent of read more

Some Federal Lawmakers Want to Use New Tax Cuts for the Wealthy as Cause to Undermine Basic Supports for Kentucky Families

By Ashley Spalding
December 21, 2017

The tax bill Congress passed yesterday was the first in a two-step plan to cut taxes for the wealthy and corporations and pay for them later through cuts to critical investments that help everyday Kentuckians. The final tax bill will increase taxes for middle- and low-income families, end health care for millions and increase federal deficits. Step two of the plan is slated for next year, when lawmakers indicate the increased deficits may be used to justify dangerous cuts to everything from food assistance for families and education to Medicare, read more

Passage of the Dream Act Would Benefit Kentucky

By Anna Baumann
December 21, 2017

In September, the Trump Administration announced the end of DACA (Deferred Action for Childhood Arrivals), a program established by executive order that granted immigrant youth who were brought to the U.S. as children temporary relief from deportation and authorized them to work. By passing the Dream Act, Congress can restore and even strengthen the legal protections for these young Kentuckians who contribute to our commonwealth by going to school, working, paying taxes and more. In the absence of a Dream Act, Dreamers, their families and our communities will be harmed. read more

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