Kentucky Center for Economic Policy: Tax Plan Would Fix Kentucky’s Budget Challenges by Addressing Upside Down Tax Code
ITEP Work in ActionKentucky’s current tax system lets those with the greatest ability to pay taxes contribute the least as a share of their income. A study by the Institute on Taxation and Economic Policy shows that low- and middle-income people pay between 9.5% and 11.1% of their income in total state and local taxes, while the top 1% pay only 6.7%, as shown below.