A panel appointed by the governor to study tax reform in Kentucky has rejected a proposal to tax food at grocery stores. The idea was unpopular with the 17-member Blue Ribbon Commission of Tax Reform, which dismissed it as a burden on the poor. Consultants said a 6 percent tax could generate about $500 million each year.
Consultants hired last week to help Kentucky's Blue Ribbon Commission on tax reform stressed the importance of tax policies and business climates in surrounding states. A new rating released today by Chief Executive Magazine places Tennessee and Indiana in the top five states, in terms of having business-friendly climates.