Tax Overhaul in Kentucky Could Be Progressive... Or Not

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This week, Kentucky's legislative session ended without much in the way of progressive tax reform actually becoming law. Instead, policymakers voted during the 30-day session to approve a cigarette tax hike and remove the sales tax exemption on beer and liquor. But there is some hope that the session laid productive ground work for tax reform efforts next year. According to the Lexington Herald-Leader, tax overhaul discussions are on the horizon. At the moment, the choice seems to be between a bill that would eliminate the state's corporate and personal income taxes or a different bill that would introduce a state earned income tax credit (EITC), broaden the sales tax base to include services, and add new top income tax brackets. Legislators and policymakers interested in tax fairness should stay focused on passing a bill that includes an EITC and sales tax base expansion.

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