40 Million in Tax Credits for Investors

(Proposed Angel Investor Act)

The Kentucky Online Action Group found the pre-filing of Angel Investment Act (shown on the right), which is the result of a proposal submitted by the Kentucky Blue Ribbon Tax Reform Commission. The act provides 40 million in tax credits for investors.

While proposing tax credits for investors, the commission recommended some very serious tax changes for the rest of Kentucky citizens. Some of which include: 

- taxing retiree Social Security benefits, which were previously exempt from the state income tax;

- taxing Military retirees, IRAs, and other pension plans starting at $15,000 instead of the current level of $41,110;

- eliminating 75% of the total in itemized deductions for things like home mortgage interest and charitable contributions.

Looking at the proposals by the Blue Ribbon Commission, it seems obvious that it overlooked one important detail; the 2012 poverty level, which is currently set at $11,860 dollars for an individual.  Therefore, taxing retirees making about $15,000, is basically taxing people who earn just $3,140 dollars above the poverty level.