Tax Code Package Could Reduce Deficit
Frankfort, KY – A tax package aimed at raising more than $300 million over two years to help balance Kentucky's budget has finished a quick trip through the state House. Two big-ticket items in the plan would temporarily suspend tax write-offs for businesses reporting losses and would speed up sales tax collections. The proposal would not raise tax rates. The measure cleared the House on a near party-line vote today (Thursday). Nearly every Democrat voted for the bill, while almost every Republican opposed it. Supporters say the proposal will spare education and human services from painful cuts. Opponents say it will put more tax burdens on businesses. House leaders are relying on the tax code changes to help plug a more than one billion dollar shortfall in the next biennium.