With pieces of tax recommendations in the pension bill, what's next for reform?
03/29/2013 04:23 PM
Lawmakers this week used a few of the recommendations by the governor’s Blue Ribbon Commission on tax reform to help cover the costs of increasing the state’s payment into the public pension system leaving the bulk of the tax change proposals in limbo.
The funding for the tax plan includes closing some corporate tax loopholes and cutting in half the personal income tax deduction from $20 to $10.
But Lt. Gov. Jerry Abramson, who headed up the tax reform commission , said this week that he believes the will still exists to build on those tax changes. The final recommendations suggested ways to lower some taxes — like personal and corporate income tax rates — and raise others, such as spreading the 6 percent sales tax to certain services. The net effect of the recommendations would bring the state more than $600 million in new revenue.
“I’m hopeful we’ll be ready come January with a game plan because we’ve still got issues dealing with education, we’ve got issues with a need for additional state police and we’ve got issues with the need for health care,” Abramson told Pure Politics on Tuesday night after the pension deal came together. “This is one step. We’ve got 40-odd recommendations left.”
In this three-minute interview, Abramson answers questions about whether tax reform will likely wait until the 2014 General Assembly or be taken up in a special session and how he plans to lay the ground work for a plan. Plus, he answers the question about whether, politically, any bill must be revenue neutral:
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