Thursday, January 06, 2011

Senate Bill 1

I’m going to take one final look at David Williams so called tax plan. If ever there was a bill that needed killing this is it. I don’t think this collection of bad ideas was ever meant to become law. Williams is smart enough to realize this House, if they are even half way paying attention is going to kill this bill.

However, I am amazed at the arrogance of David Williams, who obviously thinks the voters of the Commonwealth are so stupid they will actually believe that he has a tax plan.

Here’s the detail:

First, the Kentucky Council of Revenue Reform has no voting members from either the Legislative or Executive branches of Kentucky government.

There is hereby established the Kentucky Council on Revenue Reform, which shall include the following members:

(a) Five economists, to be appointed by the Legislative Research Commission, provided that all appointed economists shall be employed by an accredited four-year college or university in the Commonwealth, at least one of the appointed economists shall be employed by a regional public university, and at least one of the appointed economists shall be employed by a private college or university;

(b) Two representatives from the Kentucky Society of Certified Public Accountants, to be appointed by that body;

(c) One Property Valuation Administrator, to be appointed by the Kentucky Property Valuation Administrators Association;

(d) A member of the Section of Taxation of the Kentucky Bar Association to be appointed by the taxation section of the Kentucky Bar Association;


Second, this group can hire more consultants to produce more reports that will end up sitting on shelf somewhere in the Capitol Annex.

The council may contract with independent consultants or advisors as necessary to assist in meeting the directives of this Act.

Third, the purpose of the bill is not provide a comprehensive solution to the long term revenue needs of the Commonwealth. The purpose is to lower takes paid by business.

1. Focus on the creation of jobs and enhancement of production capacity;
2. Examine the tax and revenue structure based on its adequacy, equity, sustainability, predictability, and efficiency;
3. Focus on the impact of the tax and revenue structure on the competitiveness of the Commonwealth and our ability to attract businesses and individuals to locate, live, work, and invest in the Commonwealth; and
4. Place an emphasis on making the Commonwealth a low-taxed state;


Fourth, input is to be heavily business oriented. Oh sure they can seek out any other opinion they want. But do you really think they are going to invite tax payer groups, labor unions, or advocacy groups to comment? Really?

Seek and consider the input, advice, and comments, including public testimony, written comments, or both, from parties interested in the state and local tax and revenue system, including but not limited to the following:
1. The Kentucky Association of Counties;
2. The Kentucky Association of Manufacturers;
3. The Kentucky Chamber of Commerce;
4. The Kentucky Farm Bureau;
5. The Kentucky League of Cities;
6. The Kentucky Retail Federation; and
7. The National Federation of Independent Business; and

Fifth, the leadership in the House is castrated if they don’t like the bill.

If the Speaker of the House fails to have the proposed legislation introduced, the minority floor leader of the House of Representatives shall cause it to be introduced.

Sixth, no legislator can make a change in any major way to this bill. No committee other than Appropriations and Revenue can call for a hearing on the bill. We certainly don’t want the tax payers of Kentucky to have an opportunity to comment on the bill.

Only technical amendments which do not amend the substance of the legislation shall be permitted in the Appropriations and Revenue Committee and on the floor of the House of Representatives; and
2. The legislation shall not be referred to any other committee of the House of Representatives.


A tax plan ---no.
Smoke and mirrors in an election year ---yes.