Wed January 30, 2013
Abramson: Tax Reform Legislation Not Likely This Session, Best Chance May be 2014
The head of Kentucky's Blue Ribbon Tax Commission says he thinks the prospects for tax reform are good — but they're unlikely to be approved during the current legislative session.
Lieutenant Governor Jerry Abramson spoke in Bowling Green today about his commission's 54 proposed changes to the state's tax code.
He says he thinks the best time to take on the issue, if not in a special session later this year, would be the 2014 General Assembly session.
Abramson says a key revenue- generating part of the proposed reform is lowering to $30,000 the amount of annual pension income that is tax-exempt, from the current $41,000.
"And so the feeling of the Blue Ribbon Tax Commission was that the first $30,000 that a person receives from their pension should be tax-free, which is basically where a family of three or four in Kentucky is today. So you get that free in terms of the average, and after that you would pay regular tax as income tax," Abramson said.
Abramson says the change would generate $485 million per year in revenue for the state. Some lawmakers have expressed skepticism, however, at the idea of passing anything that resembles a tax increase on seniors.