Ky. should immediately offer certain tax cuts, then have experts reform system, Williams says
09/14/2011 06:29 PM
David Williams, the Republican candidate for governor, said if elected he would immediately form a commission to revamp the tax code while simultaneously urging the legislature to eliminate a series of taxes.
That would include removing state property taxes on cars and sales taxes on hay and feed for horses, as well as on building supplies.
Williams told Pure Politics on Wednesday that he believed those immediate tax breaks wouldn’t cost the state revenue. Instead, he said they would spur additional construction that would increase property rates, help attract companies that would increase income tax receipts and free up cash for people to spend, thus driving up sales tax receipts. (see 3:00 of the interview segment).
As those cuts take effect, Williams said a commission of tax experts and academics and business leaders would look at how to rewrite Kentucky’s tax code.
The one stipulation, Williams said, is that he wants them to rewrite it in a way to ditch the state’s personal income tax (which is 6 percent for most Kentuckians), as well as the corporate income tax, which is between 4 and 6 percent.
The income taxes would be replaced with consumption taxes. But Williams said it’s up to the commission about what might or might not be exempt from such a broader sales tax. (see 0:50 of the video)
Williams, the state Senate president, first proposed a commission to revamp the tax code in December. He said he considered the personal and corporate income tax impediments but added that he’d especially like to see the corporate income tax eliminated when asked on Pure Politics.
His legislation failed in the House because lawmakers in that chamber didn’t like that they weren’t included on the commission Williams proposed and, under that bill, wouldn’t be able to change the commission’s recommendations — just vote them up or down.
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