House leaders considering additional tax increases

Democratic leaders in the House will likely propose a legislative "package" that would bring in "several hundred million dollars" to enhance Gov. Steve Beshear's austere budget proposal, said House budget committee chairman Harry Moberly.

Moberly, D-Richmond, declined to offer any specifics, saying "we've got a lot of work to do before we talk about anything."

The proposal will include some "outside the box" proposals that go beyond an increase in the cigarette tax, Moberly said in an interview Tuesday. He still expects the House to approve a cigarette tax increase of 30 cents per pack or less, which would bring in about $100 million annually.

Some of the revenue-generating measures under consideration would be traditional tax hikes, but others wouldn't, Moberly said.

"We need a revenue package and we need to talk to people about where we're going to spend the money before we pass the package so people would be comfortable with that," Moberly said. "We'll make some final decision on what we're going to do, but it will probably involve a couple of caucus meetings."

Beshear's proposed two-year, $18.8 billion General Fund budget would reduce spending by about $165 million next year by slashing spending in almost all state programs. His proposal includes a 12 percent budget cut for higher education and a $43 million reduction for the state Department of Education.

House Speaker Jody Richards, D-Bowling Green, has also mentioned the likelihood of additional tax boosts in recent days, saying he isn't willing to cut the state's education budget.

Properly funding education "is our responsibility and we're going to fulfill it," Richards said on Friday.

Like Moberly, he declined to offer any specifics.

Richards said a cigarette tax increase "won't do it all. We've got to do some other things, too."

Richards said he is still discovering "some surprises" in Beshear's budget proposal, so he isn't sure yet how much new money the House will need to generate.

- John Stamper

Comments

[Chaz]

For 7 years, the state has cheated the retirement system by failing to pay in its annual obligation. A private sector employer would be closed down and the owners jailed. Put some of that added tax revenue into the retirement system to replace the money previously stolen.

[FED UP 2]

"To All Legislatures who are up for Re-Election this year.

Governor Beshear's budget is irresponsible and would be detrimental to the "people" and would damage the infrastructure of this Commonwealth if passed.

Every voter in this state is well aware of all the waste that goes on in Frankfort by government leaders. HB 1 that passed overwhelmingly by both democrats and republicans has proven to be harmful to the economy and needs to be repealed.

You all will be voted out of office if you raise our taxes and/or approve Governor Beshear's budget.

If you legislators cannot get rid of the real waste in Frankfort, without raising taxes, and come up with a reasonable budget, not only will I NOT vote for you this year, I will actively campaign against you and hold rallies demonstrating how you voted for an irresponsible budget that cut vital programs while increasing spending on pet projects and increased taxes on the "people."

It is your job to budget our money, it is our job to vote you out of office if you cannot do your job.

Summary of Beshear's irresponsible budget:

* Cutting Vital Programs:
Governor Beshear is cutting: 15% from higher education, $43 Million from K-12 programs, K-12 SEEK money is being cut over the long term, cutting $59 Million for the elderly and mentally ill, and the debt service on $660 million of the bonds proposed will come out of the General Fund. Such debt service decreases the state’s ability to cover current expenses with current revenues, thus underscoring how irresponsible Governor Beshear's budget proposal is.

* Increase Spending for Pet Projects:
At the same time Governor Beshear has proposed to cut vital programs he has proposed an increase spending on pet projects totaling $610 Million. Governor Beshear's budget increases spending for "New General Fund Projects," totaling $443,699,000.00 and "Restore Vetoed Projects" totaling $165,932,000.00. Governor Beshear's budget shows he has misplaced the needs of the people by cutting vital programs and increased spending on pet projects vetoed 2 years ago; thus, underscoring how irresponsible Governor Beshear's budget proposal is.

* Beshear Started With Surplus - Spent Surplus & Became Overdrawn In Less Than 1 Week:
You are all very well aware that Governor Beshear entered into office with a Surplus Fund of $145 Million and a Rainy Day Fund surplus of $231 Million. After Governor Beshear increased spending by $610 Million and cut the imperative and fundamental programs above by $76 Million, Governor Beshear's proposed budget will throw this Commonwealth into a budget shortfall and damage the infrastructure of this Commonwealth.

* Repeal HB 1:
Governor Beshear's budget shows that in the first half of the fiscal year corporation income taxes will decline by 61.6 percent compared to an increase of 27.4 percent a year ago. Beshear blames the source of much of this decline is the restructuring of business taxes in HB 1 of Special Session 2006. Governor Beshear's budget shows that for fiscal year 2008, the estimated receipts from corporation income taxes are $551.5 million, representing a decrease of 44.2 percent from this time last year and blaming that decrease on HB1.

The solution to the 61.6% decline and 44.2% decrease is simple, repeal HB 1.

* State Work's Raises:
Teachers, who are state workers, will see no raises for 2 years and other state workers will only see 2% raise in 2 years. That is irresponsible and will cause an undo financial stress on teachers and state workers since they won't even receive cost of living allowances.

You legislators need to get your priorities straight and remember it is OUR money you are paid to budget. The "people" of this state deserve a responsible budget without raising taxes.

Sincerely
Fed up voter2"

You can reach a legislator in person by calling 502-564-8100 (not toll-free) or email all legislators with one email at Legislators2008@lrc.ky.gov

[giveusHB262]

Finally, a sign of real leadership coming from somewhere in Frankfort. Thank you Chairman Moberly!

It is obvious that Kentucky needs more revenue. Lawmakers have known that for at least a decade, and have ignored that truth at the expense of our schools, health care, social services roads and so much more.

Some terrific ideas for raising taxes in a fair and sensible way are contained in HB 262. Rep. Jim Wayne and 11 other legislators have put these ideas on the table, inviting others to improve on them if possible, and then pass them this session.

One of the important things for Kentuckians to understand is that our current tax system is horribly unfair to poor working folks. We send the highest tax bill in the nation to families earning just above the poverty line! So while the legislature is looking at ways to raise revenue, let's hope they also consider some measures to reduce the taxes paid by the working poor.

A state Earned Income Tax Credit could send a total of $95 million back to Kentuckians earning less than $40,000. We can take this step (which would help our struggling families and ailing economy) and raise needed revenue through other common sense measures like expanding the sales tax to a limited number of services and restoring the estate tax on estates worth more than $1 million.

[giveusHB262]

Finally, a sign of real leadership coming from somewhere in Frankfort. Thank you Chairman Moberly!

It is obvious that Kentucky needs more revenue. Lawmakers have known that for at least a decade, and have ignored that truth at the expense of our schools, health care, social services roads and so much more.

Some terrific ideas for raising taxes in a fair and sensible way are contained in HB 262. Rep. Jim Wayne and 11 other legislators have put these ideas on the table, inviting others to improve on them if possible, and then pass them this session.

One of the important things for Kentuckians to understand is that our current tax system is horribly unfair to poor working folks. We send the highest tax bill in the nation to families earning just above the poverty line! So while the legislature is looking at ways to raise revenue, let's hope they also consider some measures to reduce the taxes paid by the working poor.

A state Earned Income Tax Credit could send a total of $95 million back to Kentuckians earning less than $40,000. We can take this step (which would help our struggling families and ailing economy) and raise needed revenue through other common sense measures like expanding the sales tax to a limited number of services and restoring the estate tax on estates worth more than $1 million.

[John]

Again, I have the solution to all our revenue problems. Institute a true "sin tax" that would fairly distribute taxes to people in all segments of society, instead of just picking on smokers or whatever else they decide to individually pick on. Someone needs to have the jewels to write a bill that will:
1-raise cigarettes by 1 dollar a pack,
2-all packaged and by-the-drink sales of alcohol by 1 dollar,
3-a 1 dollar surcharge on all lap dances at strip clubs,
4-a 1 dollar tax on all fast food sales (by the purchase, not by item)
5-a 1 dollar tax on all soft drink sales (packaged or by the drink)
6-a 1,000 dollar surcharge on all sales of vehicles which do not get a minimum of 25 miles per gallon
7-a 1 dollar tax on all condoms, lubricants, or any other sexually-related items
8-quadruple all traffic fines
9-legalize prostitution and charge a 10 dollar tax on each piece "rented"
10-charge a 1 dollar tax on all snack foods, potato chips, and other items that are considered bad for you by science.

NOW, if someone will write this bill, and the legislature passes it, you will bring in more money than 25 casinos and be able to give free tuition to all in-state students, eliminate the sales tax, eliminate the property tax, and eliminate state income taxes. But you won't do any of these because it hits a majority of the people, so you choose to go after small amounts like smokers instead. CURB YOUR SPENDING OR PASS THE BILL I JUST OUTLINED, and you will be fine. I reiterate once more, VOTE OUT ALL LEGISLATORS IN NOVEMBER, they are too comfy with the lobbyists who are destroying our nation and it's time for some people with no connections to come in and clean up their mess.

[John's insane!]

John wrote, "...a 1 dollar tax on all soft drink sales (packaged or by the drink)"

Sure. If you want to repeat the Boston Tea Party and have thousands of cases of soda dumped into the Kentucky River!

Seriously, there is merit to some of the ideas you suggested, but but some of your ideas are too far reaching. For instance, the idea that condoms deserve a "sin tax." What if the "sinners" are in fact husband and wife, one of whom has--say--AIDS. They're not sinning. They're using the product as a precaution. Or what if--to be less extreme--they're just trying to avoid pregnancy? Your tax could end up increasing preganany rates and the rate of sexually transmitted diseases.

Also, some of your taxes are a little steep. Let's go back to the soda tax you propose. You propose a dollar tax whether purchased in a package or individually. Since individual sodas are about a dollar each (a little higher in convenience stores, a little less elsewhere) you are asking for a tax of 100% of the purchase price. That's a little loco, my friend.

Also, though I'm sure legalizing prostitution would have some tax benefits, I think you'd find less resistance to casinos.

Interesting ideas. It might spark a debate, but such a bill would have ZERO, and I repeat, ZERO chance of passing. Not because legislators are in the lobbyist's pockets. But because it's stupid.