Tax Commission report outlines cuts and increases to bring state an extra $700 million
12/16/2012 09:16 PM
The Governor’s Blue Ribbon Commission on Tax Reform on Monday will officially submit to Gov. Steve Beshear its final report filled with carefully debated recommendations that, on balance, could generate an additional $690 million dollars in revenue to the state.
Not all of the recommendations would raise taxes — some suggestions call for decreasing certain rates.
The group, as charged by the governor, used six principles when considering how to revamp the tax code they are: fairness, competitiveness, adequacy, elasticity, simplicity and compliance. The commission members stated that they believed an improved tax code would create a more welcoming business environment and, at the same time, would allow the state to invest in services and priorities that benefit the citizens.
Now the key questions are whether the governor will put his political capital behind the recommendations and how legislators will accept them.
Compounding the equation is that the a legislative task force that looked into shoring up the underfunded state employee pension system called for the state to come up with an additional $300 million by fiscal year 2015 — which begins July 1, 2014 — to make the state’s full payment into the system.
Here are the major areas the group will come up with nearly $700 million in state revenue:
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