New Services to be Taxed

At the end of the 2018 legislative session, the Kentucky General Assembly passed a surprise tax bill that expanded the sales tax base and income tax base, in part to pay for income tax cuts for the wealthy. What’s changing? Kentucky’s formerly progressive tax rate structure (where higher levels of income were taxed at a higher rate) was replaced with a flat 5% rate. This cut (biggest for the wealthiest Kentuckians) decreased revenue by $500 million per year. In order […]

*Photo above taken by Bill Pugliano of Getty Images of teachers and public employees protesting budget and pension cuts during 2018 session The recently passed state budget presents tough choices for schools, universities, libraries, state agencies and other public entities. Rather than reinvesting in these vital programs, the legislature chose to continue a decade of cuts — all while cutting taxes for corporations and the wealthiest and paying for it by asking more of low and middle income Kentuckians. Instead […]

The Free Conference Committee on the Budget is currently deliberating what appropriations and revenue proposals the legislature will ultimately send to the Governor as part of our commonwealth’s next two-year budget. Kentucky Together calls on the legislature to clean up special interest tax breaks to raise the revenue we need to invest in our commonwealth. Budget proposals from the Governor, House and Senate have proven that we just don’t have enough revenue to adequately fund the public investments that grow […]

HB 200, the budget bill currently being considered by the Kentucky House of Representatives, makes cuts to important state investments but does not address special interest tax breaks that drain our general fund of adequate revenue. Below we’ve highlighted two at-risk programs — investments in our communities that help Kentuckians to thrive. Direct Service Providers Supports for Community Living waivers allow for individuals living with disabilities to remain in their communities instead of in expensive institutions. The waivers provide specialized […]