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Kentucky Governor Considering Tax Reform

By: Joseph Bishop-Henchman

Kentucky Governor Steve Beshear (D) is supposed to be close to calling a special session in May or June to consider reforming the state taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. code. One suggested basis would be introduced HB 51, which lowers to state sales taxA sales tax is levied on retail sales of goods and services and, ideally, should apply to all final consumption with few exemptions. Many governments exempt goods like groceries; base broadening, such as including groceries, could keep rates lower. A sales tax should exempt business-to-business transactions which, when taxed, cause tax pyramiding. from 6% to 5%, broadens its base, and eliminates the individual income, corporate income, and LLC taxes. Beneficiaries of many of the current exemptions have lined up against the package.