{Frankfort, Kentucky}...The 17 member Blue Ribbon Commission of Tax Reform, a panel appointed by Governor Steve Beshear to study tax reform in Kentucky has rejected a proposal to tax food at grocery stores, saying it would be a burden on the poor. Consultants say a 6 percent tax could generate about $500 million each year. The commission, which met for nearly four hours Tuesday to shorten a list of 96 recommendations, also voted to reject several other proposals, including one that would raise the coal severance tax rate, remove the property tax on airplanes and give a tax credit to people who home-school. After eliminating about 12 proposals on Tuesday, the commission discussed the individual income tax. Kentucky Center for Economic Policy Director Jason Bailey said he supports eliminating itemization but warned against lowering the rate of the income tax, which is the state's largest source of revenue. Lt. Governor Jerry Abramson, who serves as chairman of the panel, says it is making progress.Wednesday, October 24, 2012
Blue Ribbon Commission Rejects Food Tax
{Frankfort, Kentucky}...The 17 member Blue Ribbon Commission of Tax Reform, a panel appointed by Governor Steve Beshear to study tax reform in Kentucky has rejected a proposal to tax food at grocery stores, saying it would be a burden on the poor. Consultants say a 6 percent tax could generate about $500 million each year. The commission, which met for nearly four hours Tuesday to shorten a list of 96 recommendations, also voted to reject several other proposals, including one that would raise the coal severance tax rate, remove the property tax on airplanes and give a tax credit to people who home-school. After eliminating about 12 proposals on Tuesday, the commission discussed the individual income tax. Kentucky Center for Economic Policy Director Jason Bailey said he supports eliminating itemization but warned against lowering the rate of the income tax, which is the state's largest source of revenue. Lt. Governor Jerry Abramson, who serves as chairman of the panel, says it is making progress.