Tax Reform Commission Issues Report
Kentucky’s Blue Ribbon Commission on Tax Reform has proposed lowering individual and corporate tax rates, raising the cigarette tax and extending the state sales tax to certain services. Lt. Gov. Jerry Abramson says the changes recommended by the group would generate about $659 million in new state revenue each year. Abramson headed the commission and says the changes will make Kentucky more competitive in creating jobs.
The Blue Ribbon Commission proposed lowering the Commonwealth’s top corporate tax rate to 5.8 percent from 6 percent in addition to lowering individual tax rates. The state’s cigarette tax would go from 60 cents a pack to $1. The proposed services that would be subject to sales tax include dry cleaning, funeral services, car washes and beauty salons. Governor Steve Beshear says he'll discuss the commission's recommendations with state lawmakers.