KCEP Director Jason Bailey released the following statement on Governor Beshear’s tax reform plan:
“Governor Beshear deserves recognition for bringing forward a specific tax reform proposal for consideration. His plan contains some good ideas, especially in that it creates new revenue and includes modest assistance to families struggling to get by on low wages through the creation of a state Earned Income Tax Credit (EITC).
However, the plan raises only one-third of the new revenue proposed for Kentucky’s needs by the Blue Ribbon Commission on Tax Reform. The governor’s plan emphasizes competitiveness. But the key to economic growth is not more cuts to business taxes, which are already low compared to other states and which studies show matter little in creating a strong economy. Rather, it’s our ability to afford critical public investments in education, health and other areas that the state has neglected for too long.
We appreciate the dialogue that will commence with Governor Beshear’s tax proposal today. Moving forward in this debate, lawmakers should give additional attention to Kentucky’s revenue needs and to the fairness of the tax code.
KCEP will be conducting additional analysis of the plan as information comes available.”