Kentucky Forward Plan
We believe …
Kentucky taxes should be:
- Fair. The responsibility of paying taxes should be shared so that everyone contributes their fair share. Low and middle income Kentuckians shouldn't be asked to pay more of their income to state and local taxes than the wealthiest citizens of the state.
- Adequate. Our taxes are important investments in education, public safety and health – services and structures that we all need.
- Supportive of promoting the health and well-being of Kentuckians.
“Whether you earn $250,000 or $20,000, the Kentucky Forward tax package is a fair plan. It lets us all work together for Kentucky’s future.”
Fair and sensible tax reform
Kentuckians believe in strong communities and in taking care of our neighbors. Public dollars help create communities that reflect our values. Through our tax structure we make sure that we have good schools, reasonable class sizes, quality health care, clean water, and safe and protected neighborhoods.
The Kentucky Forward Plan would bring balance to our tax structure, raise about $404 million in much-needed public dollars, and help bring accountability and transparency to our state government.
What the Kentucky Forward Plan would do:
Restore our estate tax
We want to stop giving tax breaks to those who don’t need them by reinstating the state estate tax. This tax excludes farms, and would only apply to those who have more than $1 million in assets, like trust funds and other inheritances. It’s not fair to give the wealthy yet another tax cut and leave everyone else behind.
Modernize our income tax
Our income tax rates are from the 1950s. This bill would replace our deductions and old rates with a stair-stepped rate structure that modestly increases with income. For the lower-income 60% of us, these changes would, on average, lower our state income tax.
Reform our sales tax
Other states tax luxury services like limo rides, armored car services, and private golf club fees. Kentucky does not tax these services. We can bring our tax structure up-to-date by closing the exemptions for luxury services.
Lower taxes for many working families with a 15% state Earned Income Tax Credit
An EITC for working parents of families earning up to about $40,000 would put more than $100 million a year back into the pockets of those working families.