Taxes

KY To Squeeze Taxpayers for Another $659 Million Annually

Because shrinking government is unthinkable

|

After spending almost a year analyzing the state's tax code, a 16-member task force released a final report Monday that would generate about $659 million in extra revenue every year.

Some of the most controversial proposals include raising taxes on pensions, assessing a 1 percent utility tax on businesses and residents, increasing the cigarette tax by 40 cents to $1 a pack, expanding the sales tax to include more services and placing a $17,500 cap on an individual's itemized deductions.

To help offset some of those increases, the commission proposed cutting $100 million a year from corporate taxes, slightly lowering personal income tax rates and providing an earned-income tax credit for low-income workers.