Tax Reform Talk

This from Ronnie Ellis in the Glasgow Daily Times:

...When lawmakers adjourned three weeks ago, there was talk of a June special session – either to look at House Speaker Greg Stumbo’s bill to allow electronic slot machines at horse tracks or to take a look at tax reform. Senate President David Williams, R-Burkesville, downplayed the likely need for a special session.

During the session, two lawmakers from opposite ends of the political spectrum offered bills to change the state’s tax code. Rep. Bill Farmer, R-Lexington, wants to eliminate individual and corporate income taxes and extend the sales tax to services. His legislation anticipates the actual sales tax rate might also be reduced.

Rep. Jim Wayne, D-Louisville, wants to extend the sales tax to some services used primarily by the affluent and to make income taxes more progressive, taxing upper income levels at higher rates while reducing taxes for the lower end of the income spectrum.

Both Beshear and Stumbo said at the close of the session they are willing to look at tax reform during the interim period before the legislature convenes in January, but some lawmakers have said it could be taken up during a special session.

“We have committed to looking at tax reform and various (other) options that are out there,” Stumbo said.

Senate Appropriations and Revenue Committee Chairman Charlie Borders, R-Grayson, said this week that “everything would be on the table” as lawmakers deal with Kentucky’s seemingly chronic revenue shortfalls and a faltering economy.

Borders and House A&R Chairman Rick Rand, D-Bedford, have been talking of ways the state can respond to any additional shortfall, Stumbo said. The new Speaker said he’s advising House Democrats to prepare for the worst.

Farris Talks Budget to A&R

Interim Commissioner Elaine Farris takes to "the hill" today to chat with House and Senate Appropriations and Revenue committees.

She is scheduled for the Senate A&R in a little less than an hour - 10:15 am - Room 149, Capitol Annex; and later this afternoon with the House A&R - 3:15 pm - Room 154, Capitol Annex.

The proceedings can be viewed at KET.

Follow along with the Commissioner's presentation here.



This from Ronnie Ellis in the Ashland Daily-Independent:

Lawmakers start review of budget shortfall
70 cent cigarette tax in doubt

FRANKFORT — Gov. Steve Beshear hopes lawmakers produce a solution to a projected $456 million shortfall in state revenues quickly – but it might not get it done as quickly as he’d like.

“If we can get to the end of this process by the end of this month in terms of information gathering,” Beshear said Tuesday afternoon, “and talk about some solutions we can agree on, hopefully by the first week or so of February, we can have this problem solved so we can move on to other areas.”

But Senate Appropriations and Revenue Chairman Charlie Borders, R-Grayson, said earlier that lawmakers “recognize the complexity of the problem” and plan to review carefully the state budget and Beshear’s proposals to deal with the shortfall. That began Tuesday with a presentation by Beshear’s acting Budget Director John Hicks before a joint meeting of the Senate and House A&R committees.

Both committees will meet separately throughout the day Wednesday and Thursday, hearing from cabinet secretaries about what impact the budget reductions may have. New House A&R Chairman Rick Rand, D-Bedford, said the committees plan to convene at 9 a.m. and work until late in the afternoon both days...