KY Policy Blog

Expanded Federal Earned Income Tax Credit Would Be Big Benefit to Kentucky Workers

By Jason Bailey
March 5, 2014

The President’s budget for 2015 includes several important improvements to the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC) that, taken together, would help low-wage Kentucky workers and their families make ends meet, reduce income inequality and give a boost to the state’s economy.

One proposal is to expand the now-tiny Earned Income Tax Credit (EITC) for working childless adults and non-custodial parents (“childless workers”), an idea that has growing support across the political spectrum. That expansion would help 187,000 workers in Kentucky.1

Currently, a childless adult working read more

Sequestration Cutting Housing Assistance for Thousands of Low-Income Kentuckians

By Anna Baumann
November 7, 2013

As many as 4,000 fewer low-income Kentucky families will receive rental assistance by the end of 2014 if Congress does not reverse or substantially mitigate the damage done by sequestration to the Housing Choice Voucher program, according to a new report by the Center on Budget and Policy Priorities (CBPP).

Sequestration – the deep, across-the-board budget cuts that started this year and that are not slated to end until 2021 – reduced the Housing Voucher program’s funding by $938 million in 2013. Funding will remain at that level unless Congress read more

Budget Cuts Stack Up: Kentucky Faces the Eighth Largest Decrease in Federal Grants Among States

By Anna Baumann
June 19, 2013

Kentucky will receive $162 million less in federal grant funding in 2013 than it did in 2012, according to a new brief by the Economic Policy Institute (EPI). The report looks at the state-level impact of recent federal budget decisions and shows a 1.7 percent funding decrease in Kentucky, the eighth largest cut among the states.

The Budget Control Act of 2011 (BCA) cut more than $1 trillion from the federal budget by capping discretionary spending between 2012 and 2021. An additional $1.2 trillion in cuts ($85.4 billion in 2013) read more

Federal Limit on Tax Expenditures Would Generate Needed Revenue and Make Taxes Fairer

By Anna Baumann
April 30, 2013

President Obama’s proposal to limit tax savings on itemized deductions and exclusions for high-income people would raise more than half a trillion dollars over the next decade while increasing taxes for only 1.9 percent of Kentuckians, according to a new report released today by Citizens for Tax Justice (CTJ).

The tax expenditures President Obama proposes to limit give the biggest tax breaks to the wealthiest individuals. For example, 77 percent of the benefit of the mortgage interest deduction goes to homeowners with incomes above $100,000.

That’s because for each dollar read more

Ryan Budget Would Mean Substantial Funding Cuts in Kentucky

By Anna Baumann
March 27, 2013

House Budget Committee Chairman Paul Ryan’s budget—which the House passed by a slim margin last week—would cut funding to state and local governments in Kentucky by an estimated $301 million in the coming year and $3 billion over the next 10 years, according to a report released today by the Center on Budget and Policy Priorities.

The report is based on the assumption that the federal government would cut funding to state and local governments by the same 18 percent over the next 10 years that Ryan’s budget would slash read more

The Bigger Picture on Who Pays Taxes

By Jason Bailey
October 8, 2012

The vast majority of Kentuckians (and Americans) who don’t owe federal income taxes are either workers who pay payroll taxes, seniors, people with disabilities or students.

In 2009-2010, 49 percent of Kentuckians owed no federal income taxes. 76 percent were either workers who paid federal payroll taxes (57 percent) or the elderly (19 percent)—many of whom paid federal income taxes before they retired. These groups didn’t owe federal income taxes because their wages were too low; because they qualified for measures like the Earned Income Tax Credit, which helps lift read more