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...
Budget & Tax
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...
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...
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...
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....
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...
Cutting Tax Rates Proving to Be a Fad Hurting State Budgets
Before going on a fad diet, it's best to check out how other folks are doing on the plan. Are they looking good and feeling more energized, or do they...
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...
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...
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...