A tax study commission is recommending 54 changes to the Kentucky tax code, including a combination of revenue-raising measures and rate cuts that would net the sate about $659 million a year.
According to the Louisville Courier Journal
, Democratic Gov. Steve Beshear received the recommendations on Monday from the 17-member panel he appointed in February after he acknowledged that his budget proposal for the next year would not adequately address the state's needs.
Beshear has no power on his own to change the state tax code. But he said he plans to review the report and discuss it with legislators. Lt. Gov. Jerry Abramson, who served as the tax commission chairman, said he believes the reform recommendations will modernize the state's tax structure while positioning the state to help attract more businesses and create more jobs.
The commission report includes recommendations to reduce both individual and corporate income tax rates. But it would cap itemized deductions for higher-income earners at $17,500 a year.
The report also calls for reducing the substantial tax exemption allowed for pension income and raising cigarette taxes to $1 per pack, up from the current 60 cents per pack.
© 2014 Newsmax. All rights reserved.