“Single Sales Factor” Would Cost Substantial Revenue Kentucky Needs for Investments that Work

By Jason Bailey
February 20, 2014

A proposal included in Governor Beshear’s tax reform plan that would change the way Kentucky calculates state corporate income taxes for big multistate corporations would wipe out one-third of the corporate income tax revenue Kentucky needs for investments that will grow the state’s economy. Claims about the economic development benefits of such a change—which would base corporate income taxes solely on a company’s sales in Kentucky, ignoring its other assets—are unsubstantiated. 

Single Sales Factor Brief