Understanding Local Tax Reform on the Pegasus Podcast
In 2018, Kentucky legislators passed the first comprehensive tax reform package in 80 years. The reforms from two years ago were an essential first step in moving Kentucky's tax code in a more competitive direction, and in a direction that many of our neighboring states had done years ago.
The tax reform efforts of 2018 focused largely on state-wide taxes. This meant moving to a flat tax rate for corporate and personal incomes and beginning the shift from production side taxes to consumption taxes. To continue this tax overhaul, lawmakers must now focus on reforming Kentucky's local tax structure in an effort to continue to make our state and cities more competitive.
So what exactly do the cities need? On this week's podcast we sat down with JD Chaney, Executive Director of the Kentucky League of Cities, to discuss what needs to happen to ensure cities and local municipalities can have the most effective and efficient tax systems. Currently, are cities's hands are tied in the ways they can raise revenue. Our conversation focuses on why we must remove those restrictions and what will happen if we do not.
A couple years ago Kentucky took the first big step in doing away with its antiquated tax system, but now, we must continue those efforts by focusing on reforms to local tax structures.
Check out the KLC write up on our conversation HERE and find all the links to listen to the podcast BELOW: