The economy is struggling. Consumers and small businesses are, to say the least, less than optimistic. So, what do legislators in the Kentucky House do? Well, they pass a budget that increases taxes.
According to a March 13 report in the Lexington Herald-Leader, the measure would increase the tax on a pack of cigarettes from 30 cents to 55 cents. That’s an 83 percent increase. Taxes on other tobacco products also would increase. For good measure, the state 6 percent sales tax would be extended to air charter, armored car, security, commercial janitorial and commercial linen services. And finally, an expected 1.5-cent increase in the gas tax scheduled to go into effect this summer would be made permanent.
So, according to these legislators, higher costs for consumers and businesses in order to keep the government’s spending juggernaut moving ahead makes economic sense – particularly when energy costs are high, and the economy is in or flirting with a recession. Hmmm.
Of course, this makes no sense whatsoever.
Perhaps there is hope in the Kentucky Senate, however. The March 13 Courier-Journal quotes Senate President David Williams saying: “The only thing I can tell you is I’ve heard very little sentiment in the Senate for increasing taxes.”
Hopefully, that sentiment will carry the day.
Hey, and here’s a crazy thought: How about some tax cuts to help the economy? Kentucky, for example, would benefit from reductions in the state’s personal and corporate income tax rates, and its capital gains tax. And by the way, with prices at the pump through the roof, why not get rid of – rather than making permanent – that gas tax hike?
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