Kentucky’s Lieutenant Governor says the Commonwealth has already cut $1.6 billion in government spending in the past five years, and without revenue growth and tax reform another $1 billion may need to be cut by 2020.
In a speech to the Paducah Rotary Club Wednesday the Lieutenant Governor explained the Blue Ribbon Commission on Tax Reform’s mission, and some of the recommendations. One of the commission’s proposed reforms suggests lowering the pension exemption rate from $41,000 to $30,000.
“The point is that here come the boomers, they’re going to be retiring, they’re going to have pensions, and we’re going to give them $41,000 exemption when across the river, it’s 10 or over in Indiana, it’s 12 or over in West Virginia, it’s 15,” said Abramson.
Abramson says the commission’s other recommendations include capping itemized deductions, establishing a 15% state earned income tax credit and decreasing the state tax rate for corporations.
Abramson says the lawmakers are reviewing the proposals, but they aren’t in bill form yet. He doesn’t expect a vote on the plans this legislative session.