In light of the chronic revenue shortfalls and budget disasters
plaguing Kentucky and the total unwillingness of career politicians like Steve
Beshear and David Williams to address these issues here is a tax simplification and fairness plan as part of my vision for
Kentucky. I am calling for a total
revision of KRS Chapter 141 dealing with taxes.
This plan is a simple, fair, and progressive tax plan that will put dollars in the hands of working
people and small business while progressively taxing the richer segments of our
economy.
The Tax Simplification and Fairness plan has five key
points:
1.
Revise
the individual income tax rates with no tax on earnings below $50,000. Income over $50,000 will be taxed a graduated
rate from 6% to 15%.
2.
No
tax on business income less than $250,000. Income
over $250,000 would be taxed at a graduated rate from 6% to 15%.
3.
Eliminate
the
Limited Liability
Entity Tax (LLET)
4.
Eliminate
all tax credits, exemptions, rebates, exclusions, incentives and deductions.
5.
Reduce
the sales tax rate to 4% and expand the sales tax to all services and goods
excluding food and medical.
The median household income in Kentucky is about $40,000
and small business in Kentucky accounts for over 95% of all jobs. The first
three points of our plan addresses the need of putting money in the hands of
individuals and businesses that will spend the money and jump start the economy
in Kentucky.
The elimination of the LLET would remove an unfair tax on
small business in Kentucky.
Kentucky currently gives away half of all tax revenue in
credits, exemptions, rebates, exclusions, incentives and deductions. Many of these “tax breaks” were enacted by
the General Assembly and signed by Governors to curry favor with special interest
groups. There should be no sweat heart
deals for the special interests. Everyone will pay their fair share.
Reducing the sales tax rate and expanding the tax to
services acknowledges the fact that Kentucky has moved from a manufacturing
based economy to a service based economy.
We feel that taxes on services would be fair to all Kentuckians. If you want to rent a stretch limo or hire a
tax accountant you should pay a tax on that service. Everyone will pay their fair share.
