Fri November 9, 2012
Tax Commission Looks at Exemption on Pensions
A panel appointed by Kentucky Governor Steve Beshear to recommend tax reforms is considering a proposal that would result in more retirees having their pensions taxed. Lieutenant Governor Jerry Abramson, chairman of the Blue Ribbon Commission on Tax Reform, says members may recommend tweaking a policy that exempts annual pensions of $41,100 or less from taxes.
Abramson said commission members are looking at decreasing that exemption to pensions of $15,000 or less. The group is tentatively scheduled to meet again on November 19th.
Beshear appointed the panel earlier this year to recommend a simpler tax code that would generate enough revenue to meet state needs even during recessions. The group has already ruled out implementing a 6% tax on groceries, which would have generated nearly $500 million a year.