A panel appointed by Gov. Steve Beshear to look at changes to Kentucky's tax system has proposed lowering individual and corporate tax rates, raising the cigarette tax and expanding the state sales tax to certain services.
Lt. Gov. Jerry Abramson said the changes recommended by the Governor's Blue Ribbon Commission on Tax Reform would generate about $659 million in new state revenue each year.
Abramson, who headed the commission, said the changes will make Kentucky more competitive in creating jobs.
The proposal would lower the state's top corporate tax rate to 5.8 percent from 6 percent. Individual income tax rates also would drop. The state's cigarette tax would go to $1 a pack from the current 60 cents.
Lieutenant Governor Jerry Abramson and Kentucky’s Blue Ribbon Tax Commission are seeking public comment to help develop recommendations on overhauling the state tax code. Abramson says around 100 people attended the first of six regional public hearings Tuesday night. The commission wraps up public meetings in August and will have three months to finish the plan by a November deadline. Once complete, Abramson is hopeful the plan will pass the legislature.