ITEP Work in Action January 25, 2023
Kentucky Center for Economic Policy: Reducing the Income Tax Will Weaken the CommonwealthHouse Bill 1 in the 2022 Kentucky General Assembly is the next step in a legislative effort to phase down and even eliminate Kentucky’s income tax. This policy path is…
ITEP Work in Action February 15, 2021
Kentucky Center for Economic Policy: 10 Ways the Kentucky General Assembly Can Advance Race Equity and Shared ProsperityHB 356, sponsored by Rep. Lisa Willner, would go a significant way toward cleaning up Kentucky’s tax code of the many tax breaks that benefit wealthy, predominately white Kentuckians —…
ITEP Work in Action February 13, 2020
Kentucky Center for Economic Policy: Tax Plan Would Fix Kentucky’s Budget Challenges by Addressing Upside Down Tax CodeKentucky’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…
ITEP Work in Action October 18, 2018
Kentucky Center for Economic Policy: New Report Shows Kentucky’s Tax System Worsens Income Inequality
In Kentucky, the income inequality that exists between our poorest and wealthiest residents is magnified by the structure of our tax system. And thanks to the new tax law enacted by the 2018 General Assembly, that problem is getting worse.
ITEP Work in Action October 18, 2018
Message-Inquirer: Tax Study Explores ‘Who Pays?’ in Kentucky
A new study from a national economic policy research group suggests Kentucky’s tax structure has become less equitable since the last General Assembly’s tax reform legislation, putting more tax obligation on poor and middle-class Kentuckians.
ITEP Work in Action October 17, 2018
Kentucky Center for Economic Policy: New Report: Wealthiest Kentuckians Pay the Lowest Tax Rate and the Problem Is Worsening
The study, Who Pays? A Distributional Analysis of the Tax Systems in All 50 States, evaluates the major components of state and local tax systems – including personal and corporate income taxes, property taxes, sales taxes and other excise taxes – for their overall distributional impact across income groups. For example, Kentucky’s low income tax credit means that people in poverty do not pay state income taxes. However, because the state fails to provide refundable tax credits to offset sales, excise and property taxes paid by low-income people, and because the state has a flat as opposed to graduated income tax rate structure, the poorest 20 percent of Kentuckians pay an effective tax rate 1.42 times higher than that paid by the top 1 percent.
October 17, 2018
Kentucky: Who Pays? 6th Edition
According to ITEP’s Tax Inequality Index, which measures the impact of each state’s tax system on income inequality, Kentucky has the 25th most unfair state and local tax system in the country. Incomes are more unequal in Kentucky after state and local taxes are collected than before.
September 26, 2018
Tax Cuts 2.0 – KentuckyThe $2 trillion 2017 Tax Cuts and Jobs Act (TCJA) includes several provisions set to expire at the end of 2025. Now, GOP leaders have introduced a bill informally called…
ITEP Work in Action August 22, 2018
Kentucky Center for Economic Policy: Clean Up the Tax Code to Invest in Our CommonwealthTo move our tax code in the right direction, Kentucky should rejoin 32 other states with a graduated income tax based on ability to pay. Income below $37,500 single/$75,000 married…
blog May 22, 2018
Most States Have Raised Gas Taxes in Recent Years
An updated version of this blog was published in April 2019.
State tax policy can be a contentious topic, but in recent years there has been a remarkable level of agreement on one tax in particular: the gasoline tax. Increasingly, state lawmakers are deciding that outdated gas taxes need to be raised and reformed to fund infrastructure projects that are vital to their economies.
ITEP Work in Action April 20, 2018
Kentucky Center for Economic Policy: New Tax Law Shifts from the Wealthy to Kentuckians of Color and Economically Distressed Regions of State
In the waning days of the 2018 General Assembly, legislators passed House Bill 366 (HB 366), a regressive tax reform package that gives a tax break to the wealthiest but asks more of everyone else, especially low-income Kentuckians. In addition to widening income disparities, these changes will exacerbate existing racial and geographic inequality in our state.
ITEP Work in Action April 16, 2018
The Chronicle: Value Teachers, Unions to Better Education
It is not a coincidence these movements took place in Republican-led states in which tax cuts take precedence over funding education. An example is Kentucky House Bill 366, which would cut taxes of the state’s wealthiest residents while increasing taxes of low-wage earners, according to the Institute on Taxation and Economic Policy.
ITEP Work in Action April 13, 2018
Washington Post: Kentucky’s Tax Cut for the Top 5 Percent Survives Despite Governor’s Veto
Republicans in Kentucky’s state legislature overturned Gov. Matt Bevin’s (R) vetoes of their tax overhaul and budget plan Friday, capping a dramatic confrontation between members of the same party that has also seen thousands of teachers descend on the state Capitol in protests for better pay.
media mention April 11, 2018
CNN: Kentucky Governor Signs Controversial Pension Bill as Teachers Call for Rally
An analysis of that bill by the Institute on Taxation and Economic Policy found it would bring a huge tax cut for the richest 1% of residents, while the biggest tax increase would affect those making less than $21,000 a year.
media mention April 6, 2018
Courier Journal: Kentucky Tax Reform Bill is a Break for the Rich but a Hike for Everybody Else, Study Says
The tax bill that zipped through the General Assembly on Monday will amount to a tax break for millionaires but a tax increase for 95 percent of Kentuckians, according to an analysis by the Washington-based Institute for Taxation and Economic Policy.
media mention April 6, 2018
WUKY: A Tale Of Two Tax Studies
“This is a complicated tax plan with a lot of moving pieces, but the net result is clear: that it is middle-class tax hike. Kentucky’s poorest families and the middle class will end up paying more while the state wealthiest taxpayers are going to end up paying less,” ITEP analyst Aidan Davis says.
ITEP Work in Action April 5, 2018
Lexington Herald Ledger: Study: GOP Bill Cuts Taxes for the Rich, Raises Taxes for 95 Percent of Kentuckians
A new study of the tax bill rushed through the Kentucky General Assembly Monday shows the changes it makes to the tax code are likely to lower taxes for the wealthy while raising taxes for 95 percent of Kentuckians.
The analysis, performed by the Institute for Taxation and Economic Policy in Washington D.C., a liberal-leaning think tank, studied the impact of the tax cuts and increases on Kentuckians.
ITEP Work in Action April 5, 2018
Washington Post: Kentucky Legislators Send Tax Cuts for Wealthy, Tax Hikes for the Other 95 Percent to Governor’s Desk
The Kentucky legislature passed a sweeping tax overhaul this week, and now lawmakers are asking Gov. Matt Bevin to sign a bill that would slash taxes for some corporations and wealthy individuals while raising them on 95 percent of state residents, according to a new analysis.
ITEP Work in Action April 4, 2018
Kentucky Center for Economic Policy: House Bill 366 Represents a Tax Shift Away from the Wealthy to Low- and Middle-Income Kentuckians
A new analysis of HB 366 by the Institute on Taxation and Economic Policy (ITEP) shows the dramatically skewed impact of the tax changes on Kentuckians by income group. As can be seen in the graph below, Kentuckians whose income puts them in the top 5 percent will see a tax cut, with those in the top 1 percent, whose average income is $1,042,000, receiving an average tax cut of $7,086.
ITEP Work in Action April 2, 2018
Kentucky Center for Economic Policy: Tax Plan Is a Tax Shift with Troubling Long-Term Effect on RevenuesThe General Assembly introduced a tax bill today that is a shift in taxes away from corporations and high-income people and over to low- and middle-income Kentuckians. Although the official…
ITEP Work in Action December 21, 2017
Kentucky Center for Economic Policy: Passage of the Dream Act Would Benefit KentuckyThe Institute on Taxation and Economic Policy (ITEP) estimates that 6,000 (formerly) DACA-eligible Kentuckians currently contribute a total of $8.1 million in local and state taxes annually through sales and…
December 16, 2017
How the Final GOP-Trump Tax Bill Would Affect Kentucky Residents’ Federal TaxesThe final tax bill that Republicans in Congress are poised to approve would provide most of its benefits to high-income households and foreign investors while raising taxes on many low-…
December 6, 2017
How the House and Senate Tax Bills Would Affect Kentucky Residents’ Federal Taxes
The House passed its “Tax Cuts and Jobs Act” November 16th and the Senate passed its version December 2nd. Both bills would raise taxes on many low- and middle-income families in every state and provide the wealthiest Americans and foreign investors substantial tax cuts, while adding more than $1.4 trillion to the deficit over ten years. The graph below shows that both bills are skewed to the richest 1 percent of Kentucky residents.
ITEP Work in Action November 21, 2017
Senate Tax Plan Harms Low- and Middle-Income Kentuckians to Pay for Giveaways to Those at the Top
Senators will return to Capitol Hill next week after the Thanksgiving recess for a potential vote on their revised plan. According to estimates from the Institute on Taxation and Economic Policy (ITEP), the bottom 60 percent of Kentuckians, who make an average of $37,500 a year, will actually face more taxes from the plan with an average increase of $80 in 2027.
November 13, 2017
How the Revised Senate Tax Bill Would Affect Kentucky Residents’ Federal Taxes
The Senate tax bill released last week would raise taxes on some families while bestowing immense benefits on wealthy Americans and foreign investors. In Kentucky, 43 percent of the federal tax cuts would go to the richest 5 percent of residents, and 9 percent of households would face a tax increase, once the bill is fully implemented.