EKB News

According to a new study by the Institute on Taxation and Economic Policy in Washington, D. C., low and middle-class Kentuckians pay a larger portion of their incomes on state and local taxes than wealthier people do. While the study reveals wealthier people pay more in income taxes, the income tax is the only one designed to be progressive and does not offset the effects of the other two. Some public-policy groups are pushing a tax reform bill from Representative Jim Wayne (D-Louisville) that would give more tax credits to the poor and raise income taxes on the wealthy, while taxing more services. Another tax reform bill from Representative Bill Farmer (R-Lexington) would totally eliminate the income tax, while taxing services. Governor Beshear says he opposes both measures because they would create tax increases. However, the groups say the upside-down approach to state and local taxes should not disproportionally impact the poor.