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State Tax and Budget

Analysis

What’s So Dangerous About Cutting Income Tax Rates

When talk turns to state tax reform, some make the claim that Kentucky’s income tax rates are an impediment to...

Jason Bailey | October 29, 2014

Analysis

S&P Report Says Growing Inequality Harming State Budgets, Especially in States More Dependent on Sales Taxes

A new report from the credit rating agency Standard and Poor’s (S&P) says that growing income inequality is making it harder for states to generate the revenue needed to fund education and...

Jason Bailey | September 17, 2014

Analysis

Two Pillars of Making Work Pay: Minimum Wage Increase and a State Earned Income Tax Credit

Increasing the state minimum wage and instituting a state Earned Income Tax Credit (EITC) and are two policies that complement each other and can help working families better make ends...

Ashley Spalding | September 3, 2014

Analysis

Congressional Vote on Internet Tax Loopholes Could Help or Harm Kentucky’s Budget

The Senate is expected to vote soon on continuing a moratorium on state and local taxes of Internet access, and the specifics of what passes could mean hundreds of millions...

Jason Bailey | September 3, 2014

Analysis

New Year-End Data Show Kentucky’s General Fund Continuing to Erode

In order to maintain investments in education, health, safety and other services that our citizens, businesses and communities rely on, Kentucky needs revenue growth that keeps pace with the economy....

Anna Baumann | August 1, 2014

Analysis

Revenue Growth Will Need to Pick Up to Hit 2015 Forecast

State revenue is now expected to grow only 1.3 percent for the first three quarters of the new budget year that began in July, according to a just-released state interim...

Jason Bailey | August 1, 2014

Analysis

Five Factors Behind Shrinking Revenue Growth in the Recovery

The rate of revenue growth in Kentucky’s General Fund has slowed down between 2011 and 2014, as seen in the graph below. That’s a big part of why Kentucky’s budget...

Jason Bailey | July 28, 2014

Analysis

Lopsided Recovery Reflected in Which Revenue Sources Have Grown

Since declining in 2009 and 2010 because of the recession, Kentucky's General Fund revenues have grown for four straight years. But the state’s different sources of revenue have grown or...

Jason Bailey | July 16, 2014

Analysis

Details of Revenue Shortfall Should Not Be Misinterpreted to Support Bad Tax Ideas

A $90 million revenue shortfall for FY 2014 adds to Kentucky’s challenge as the state moves forward into the new two-year budget. It’s important that the right conclusions about tax...

Anna Baumann | July 11, 2014

Analysis

What’s Behind the State’s Revenue Shortfall?

Now that Kentucky has ended its 2014 budget year, the governor’s office will announce how big the state’s year-end revenue shortfall is sometime in the next two weeks. It’s expected...

Jason Bailey | July 1, 2014

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