Wednesday, April 16 2014 10:54 PM EDT2014-04-17 02:54:16 GMT
LOUISVILLE, Ky. (WDRB) --The Rangers are the Army's most elite soldiers who are put into some of the most dangerous situations in Afghanistan. In a story you'll only see on WDRB we got a rare look atMore >>
The Army Rangers choose Fort Knox as the location to prepare for the 3rd Battalion's 20th deployment to Afghanistan.More >>
Follow the WDRB Newsroom, Reporters and Anchors.More >>
Tweets from the WDRB Newsroom, Reporters and Anchors.More >>
FRANKFORT, Ky. (WDRB) -- Gov. Steve Beshear unveiled a tax reform plan Tuesday that includes limiting wealthy seniors' ability to claim the state's generous exemption on retirement income, creating a state-level earned income tax credit for the working poor and applying the state sales tax to services such as the labor on car maintenance.
The plan faces uncertain prospects in the General Assembly, but Beshear vowed to continue to advocate for the changes even if they are not adopted in the current session.
"For us not to look at this and not to address it would be to not uphold our responsibility," said Rep. Rick Rand, a Bedford Democrat who chairs the House Appropriations and Revenue Committee.
Beshear's office released the following summary of the plan's components:
Creates a Tax Code that Competes for Quality Jobs:
Reduces individual income tax rates. When coupled with existing Family Sized Tax Credit, the proposed Earned Income Tax Credit, and the new Hold Harmless credit, every working Kentuckian will benefit from this rate change proposal.
Enacts a Refundable Earned Income Tax Credit (EITC) at 7.5 percent of the federal credit. This tax credit is targeted to low-wage earners, and research shows the EITC will be reinvested in local communities, which stimulates the economy.
Lowers the top corporation income tax rate from 6 percent to 5.9 percent
Phases in ‘single factor apportionment' solely on sales for corporation income tax
Creates an angel investor tax credit
Expands the state's Research and Development tax credit to human capital
Doubles the New Markets Tax Credit
Exempts inventory from state property tax
Eliminates selected negligible state property tax rates for tangible personal property
Helps Kentucky's Signature Industries Thrive and Expand:
Creates an income tax credit for the bourbon industry
Exempts sales and use tax on certain equine products, similar to other livestock
Exempts sales tax on pharmaceuticals for food animals
Lowers wholesale tax on beer, wine and distilled spirits
Repeals the distilled spirits case sales tax
Creates a Healthier Kentucky Workforce to Attract Jobs
Increases tax on cigarettes to $1
Increases tax rate on other tobacco products commensurate with cigarette rate increase
Creates tax on e-cigarettes at 20 percent of value
Restores cigarette rolling papers tax
Modernizes Code to Acknowledge Changes in the Economy and Technology
Broadens the sales tax to include selected services. Kentucky long ago moved from a goods-based economy to a services-based economy, but the tax code has not adapted to this transition. This proposal expands the sales tax to the labor associated with installation and repair of taxable goods, certain recreational activities, and certain commercial, residential and personal services. Additional information is attached.
Clarifies that the sales tax is applicable to all prewritten software, regardless of delivery method. This addresses new challenges for the sales tax created by sales on the digital cloud.
Applies sales tax and transient room taxes to the entire hotel accommodation price. This modernization proposal clarifies that all amounts paid for staying in a Kentucky hotel or similar accommodation, including amounts charged or retained by online travel companies, are included in the tax base for the sales tax and state and local transient room taxes.
Modernizes Code to Acknowledge Changing Demographics, Differences with Other States
Reduces retirement income exclusion for taxpayers with a federal AGI of more than $80,000; phases it out for AGI over $100,000. This proposal still keeps Kentucky's tax code among the friendliest for retirees. Social Security benefits are currently not taxable in Kentucky and would not become taxable under this proposal.
Phases out $10 Individual Income Tax Credit
Requires same income tax filing status for married couples at state level as federal level
Wednesday, April 16 2014 3:56 PM EDT2014-04-16 19:56:53 GMT
LOUISVILLE, Ky. (WDRB) -- KentuckyOne Health lost nearly $100 million on its statewide operations during the last six months of 2013, according to a financial report released late last month by Denver-basedMore >>
A report released last month sheds light on the financial straits that led KentuckyOne to lay off about 500 employees in February. More >>
Tuesday, April 15 2014 6:07 PM EDT2014-04-15 22:07:42 GMT
LOUISVILLE, Ky. (WDRB) -- The Butchertown Neighborhood Association is asking a judge to overturn a Louisville zoning board's decision last month to allow a small expansion of the JBS/Swift hog slaughteringMore >>
The Butchertown Neighborhood Association is asking a judge to overturn a Louisville zoning board's decision last month to allow a small expansion of the JBS/Swift hog slaughtering plant.More >>
Wednesday, March 26 2014 4:54 PM EDT2014-03-26 20:54:14 GMT
LOUISVILLE, Ky. (WDRB) – The plan to fund a $180 million renovation and expansion of the Kentucky International Convention Center in downtown Louisville hangs in the balance this week as lawmakers negotiateMore >>
The plan to fund a $180 million renovation and expansion of the Kentucky International Convention Center in downtown Louisville hangs in the balance as the 2014 General Assembly comes to a close.More >>
Tuesday, March 25 2014 12:09 PM EDT2014-03-25 16:09:17 GMT
A new strategy by Mayor Greg Fischer to foreclose on vacant homes and lots has yielded few results so far. At least part of the hold-up is that court cases are not being attended to, a WDRB review found. More >>
A new strategy by Mayor Greg Fischer to foreclose on vacant homes and lots has yielded few results so far. At least part of the hold-up is that court cases are not being attended to, a WDRB review found.More >>