To run a successful business, it only makes sense to bring in more than it hands out. The same is true for our Commonwealth; to be successful, Kentucky must bring in more tax revenue than it gives away in tax breaks.
Unfortunately, this is not how Kentucky’s current code operates.
Presently, our great state gives away approximately $12 billion a year in tax breaks and collects approximately $10 billion a year in tax revenue. Do you see the discrepancy? Giving away more than taking in is a sure sign of changes to come in our tax code.
Thus, Gov. Bevin has reportedly been seeking advice from Arthur Laffer. Mr. Laffer worked with former presidents Nixon and Reagan.
Arthur Laffer
In 2012, Mr. Laffer was heavily involved in Kansas’ tax reform. A byproduct of his upside down tax plan has left Kansas in an active recession. Kansas has resorted to slashing funding to the majority of their once state-sponsored services.
Other states, namely Louisiana and North Carolina, executed similar Laffer Curve tax breaks and left both states in financial crisis.
Mr. Laffer’s archaic tax ideas create an extremely high tax burden on the middle & lower classes to uphold the state, whilst simultaneously giving huge tax breaks to the upper class & big businesses. This strategy makes a state only as strong as its poorest classes since they are the ones expected to hold up the state’s economy.
Since this isn’t sustainable, the next step would be to increase sales tax. This has been proven to further overburden the middle and lower classes & again relies on the poorest residents to hold up the state’s economy.
In 2016, the median income for a Kentucky family was approximately $56,000 & the average income was approximately $45,000. These figures would lead one to believe that the average Joe Kentuckian will bear the brunt of the tax burden if Mr. Laffer’s ideology is followed, while big companies & the upper class walk away with tax breaks & benefits.
If you’re concerned at all by the involvement of Mr. Laffer in future tax plans for the Commonwealth, please call Governor Bevin (502-564-2611) or your state legislatures (800-372-7181) and express your concerns. Because chances are, YOU will pay the price.
Rachel Newton
Elsmere
Ms Newton accurately describes what is happening in our Commonwealth. Laffer has left a wide path of destruction in his wake and still Bevin and our legislature laps it up with gusto. Remember trickle down? Still waiting for that one. Sales tax increases are not the solution as she describes. Our problem is that Kentucky has too many poor people. As long as we bust unions, decry minimum wages, starve public schools and waste our time with religious (better be Christian) mandates, we will have more than our share of poor people and will never pull ourselves out of the bottom rung of success when compared with the other 49 states.