Blue Ribbon Commission Approves Plan

{Frankfort, Kentucky}…The Blue Ribbon Commission on Tax Reform says the report presented to Governor Steve Beshear on December 17th will include recommendations that could generate nearly $700 million a year. Some $485 million would come from extending the state's income tax to retirees who draw at least $30,000 a year. Social Security benefits would be exempt. Another $200 million would come from expanding the state's sales tax to household utility bills and other services that have traditionally been exempt in Kentucky. The plan approved Thursday by the commission would reduce revenue from corporate taxes by more than $90 million in hopes of making Kentucky more attractive to companies looking to relocate. Beshear has said he's not sure lawmakers will have time to pass tax reforms in the legislative session, which is scheduled to end in mid-March, but he's prepared to call a special session.