Wayne's Bill == YES; Farmer's Bill == AYKM?!?
(Hat tip to Page One, that had the story and the PDF)
Two tax-reform bills were presented in Frankfort last week. The bill by Jim Wayne improves some of the inequity in our current tax system, AND improves the revenue picture. It gets a big YES from me, and should get a Yes from anyone who cares about both fiscal responsibility and an equitable tax system.
The bill by Bill Farmer, OTOH, deserves only this response: Are You Kidding Me?!?
Make the jump to see why ...
Jim Wayne's bill lowers the tax burden on the poorest among us, raises it on the top 1% (those making about $933,000 -- I think they can afford it), and taxes some services. If it is implemented as outlined, it should generate an extra $250 million a year AND give the poor more money to spend locally.
Farmer's bill would RAISE the tax burden on the poorest among us, LOWER it substantially on the wealthy, and after 2010, could cost the state $850 million in revenue annually.
What the hell is Bill Farmer thinking? Why would we raise taxes on poor people in a recession? And if we are having conniptions and a special session over a budget shortfall of $1 billion, why would we want to face that same shortfall every year?!?
I intend to write my state reps and ask them to support Jim Wayne's bill. It's the beginning of a rework of our state tax system that is more realistic AND more equitable than what we have now.
And Farmer's bill? It deserves to star in its own show.
For more on the two bills, here's the story on Page One and here's the original PDF from The Institute on Taxation and Public Policy.
Policy and Politics | tagged Budget, Kentucky, Taxes 
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Reader Comments (3)
I started to use "AY(F)KM" in the title, but I knew some would be offended by the use of the F-bomb, so I refrained. I will say, though, that when I heard of Farmer's bill, that was my first reaction.
I agree. The Farmer Bill is "Bush tax cuts for the Rich" if we must pay a tax on our income, let it be a flat 1% for all. Right now in Kentucky the lower and middle class shoulder 2X the tax load as 20% of Ky top earners.
Dear KCD -- thanks for the comment, and for stopping by. Jim Wayne and the KFTC have some interesting graphs about income tax distribution in Kentucky. We need to publish those all over the place before next year's Gen Assembly.