Tax Reforms May Impact Every Kentuckian

The Louisville Courier-Journal and Cincinnati.com reported that the Kentucky Blue Ribbon Commission on Tax Reform is working on "recommendations that could touch the lives of every Kentucky taxpayer — from changing the state income and sales tax rates to increasing the cigarette tax." 

Some of the most significant proposals included:

- allowing cities to have a local option sales tax;

- taxing retiree pensions starting at $15,000 dollars;

- taxing Social Security benefits — now exempt from the state income tax;

- and eliminating 75 percent of itemized deductions including home mortgage interest and charitable contributions.

AARP Kentucky claimed recommendations to tax Social Security benefits and retiree pensions are “ill-timed and will unfairly burden today’s retirees, who have no time to pivot their retirement strategy.”

Taxing retirement pensions will most likely affect all current and future military, federal, state, county, and city retirees, Individual Retirement Accounts, as well as participants in U.S. Railroad pensions plans. 

Governor Beshear requested the final report by December 15. The proposals will then be discussed with legislative leaders and forwarded to the General Assembly, tasked to implement the changes to state tax laws.

If you would like to contact Governor Beshear about the proposed changes above, you can go to the following link to take action. 

http://koag2012.blogspot.com/2012/11/kentucky-online-action-group-alert-1.html