To meet our pension obligations and begin reinvesting in a stronger future for the commonwealth, Kentucky needs new revenue. Currently, too many tax breaks drain money that is needed to shore up and sustain public schools, higher education and workforce development; teacher and state worker pension systems; preschool, child care and other family supports; health care, public and mental health; and other priorities.
This menu of revenue options describes some of the main ways to clean up special interest tax breaks so that we can invest in thriving communities. Click here to view the full Revenue Options Report.
In addition to describing options — a comprehensive selection of which could generate more than $1 billion in new revenue — the report explains why Kentucky faces such deep budget challenges and the principles of good tax reform that can put the state on a better path. Because of vast inequalities in our economy today, those at the top are taking home the lion’s share of total economic growth. Yet because Kentucky taxes those at the top the least as a share of income, our tax system does not adequately track this growth. Cleaning up special interest tax breaks will improve the fairness of our tax code and the ability of revenue to grow over time.