Saw Dust and Art Supplies

According to the Herald Leader the piggy bank in Frankfort is empty.

Gov. Steve Beshear issued a dire warning Thursday about the state's budget; saying Kentucky's "financial house is in serious disarray."

"Merely saying that information still coming to us is alarming would be an understatement," Beshear said in a statement.

While you have to blame Ernie Fletcher with a large part of this problem, a major contributing factor to the bank being empty has been the legislature’s inability to structure a comprehensive revenue package. They seem to be contented to handing out tax breaks, like a break on selling saw dust (how has the Commonwealth survived without that).

There are also those that adopt the Chicken Little approach and sign the no new tax pledge. A list of these brave legislators is at the bottom of this post.

Here is some of the current proposed tax break legislation for the next session.

BR 498 - Representative Joseph M. Fischer (12/13/07)
AN ACT relating to sales and use tax on delivery charges. Amend KRS 139.050 to exempt delivery charges from sales and use tax; EFFECTIVE August 1, 2008.

BR 142 - Representative Jim Glenn (11/29/07)
AN ACT relating to sales and use tax holidays and declaring an emergency. Create a new section of KRS Chapter 139 to provide a sales tax holiday for the first week in August each year to exempt school supplies, school art supplies, and clothing with a sales price of less than $100 per item; EFFECTIVE May 1, 2008

BR 461 - Representative Tommy Thompson (12/14/07)
AN ACT relating to sales and use tax. Amend KRS 139.495 to exempt sales by churches for charitable fundraising events from sales and use taxes; amend 139.496 to comply; EFFECTIVE August 1, 2008.

BR 114 - Representative Tanya Pullin, Representative Eddie Ballard, Representative Sheldon E. Baugh, Representative Larry Belcher, Representative Larry Clark, Representative Leslie Combs, Representative Jim DeCesare, Representative C. B. Embry Jr, Representative Tim Firkins, Representative Melvin B. Henley, Representative Tom McKee, Representative Charles Miller, Representative Russ Mobley, Representative Fred Nesler, Representative Steve Riggs, Representative Carl Rollins II, Representative Sal Santoro, Representative Charles Siler, Representative Dottie Sims, Representative Tommy Thompson, Representative Robin L. Webb, Representative Ron Weston, Representative Addia Wuchner, Representative Brent Yonts (08/24/07)
AN ACT relating to income tax credits for small businesses. Create new sections of KRS Chapters 141 and 154 and amend KRS 141.0205 to establish a small business tax credit.

BR 876 - Representative Mike Denham (11/30/07)
AN ACT relating to sales and use tax. Amend KRS 139.480 to exempt straw, wood shavings, and sawdust from the sales and use tax when used in agricultural or equine pursuits; EFFECTIVE August 1, 2008.

BR 466 - Representative Robert R. Damron (12/10/07)
AN ACT relating to sales and use tax holidays and declaring an emergency. Create a new section of KRS Chapter 139 to exempt the sale or purchase of clothing with a sales price of less than one hundred fifty dollars ($150) per item, computers and computer supplies with a sales price of less than one thousand five hundred dollars ($1,500) per item, and school supplies; define terms; outline procedures; amend KRS 139.210, 139.220, and l39.340 to allow retailers to absorb the tax on other items sold during the sales tax holiday and advertise accordingly; EMERGENCY; EFFECTIVE MAY 1, 2008.

There is one bill on taxes that I do like. The bill comes from Jim DeCesare, once again proving that even a blind and sometimes bigoted hog finds an acorn.

BR 393 - Representative Jim DeCesare (12/05/07)
AN ACT relating to accounting for the expenditure of state funds. Create new sections of KRS Chapter 42 to require the Finance and Administration Cabinet to create a searchable Web site to provide certain information on the expenditure of state funds; provide that the new sections shall be known as the "Taxpayer Transparency Act of 2008."

Of the bill listed above, guess which one has the least chance of passing.

No new tax pledge signers as of Thursday, September 13, 2007, 2:28 PM from Americans for Tax Reform.

16 Senators of 38 (42%)
Walter Blevins (S-27)
Charlie Borders (S-18)
Tom Buford (S-22)
Julie Rose Denton (S-36)
Carroll Gibson (S-5)
Brett Guthrie (S-32)
Ernie Harris (S-26)
Dan Kelly (S-14)
Vernie McGaha (S-15)
Richard Roeding (S-11)
Richard Sanders (S-9)
Katie Kratz Stine (S-24)
Robert Stivers (S-25)
Gary Tapp (S-20)
Elizabeth Tori (S-10)
Jack Westwood (S-23)
27 House members of 100 (27%)
Royce Adams (H-61)
Sheldon Baugh (H-16)
Kevin Bratcher (H-29)
James Comer (H-53)
Tim Couch (H-90)
Ron Crimm (H-33)
Robert Damron (H-39)
Jim DeCesare (H-21) - Taxpayer Protection Caucus Chair
Bob DeWeese (H-48)
C.B. Embry, Jr. (H-17)
Joseph Fischer (H-68)
Danny Ford (H-80)
Jim Gooch (H-12)
W. Keith Hall (H-93)
Melvin B. Henley (H-5)
Jimmy Higdon (H-24)
Jeff Hoover (H-83)
Thomas Kerr (H-64)
Stan Lee (H-45)
Russ Mobley (H-51)
Brad Montell (H-58)
Lonnie Napier (H-36)
Marie Rader (H-89)
James Stewart III (H-86)
Tommy Turner (H-85)
Ken Upchurch (H-52)
John Vincent (H-100)