The Governor’s Blue Ribbon Commission on Tax Reform’s final report came out Monday. The Commission’s final recommendations include enacting a state Earned Income Tax Credit. Enacting a state EITC is a proven method to get and keep parents working and raises children out of poverty. The Commissioners had a serious charge – to think about what is best for all of Kentucky now and in the future. This includes ensuring a fair, competitive, adequate system.
Implementing a state EITC is a small tax measure that will be a large investment in Kentucky’s economic prosperity. It would create clear wins for individuals, businesses, and communities across the Commonwealth while promoting economic stability for thousands of families. An increase in economic stability leads to children performing better in schools and better educational opportunities.
By implementing an EITC in Kentucky, thousands of low-income working families would have additional funds to address their immediate needs and, in some cases, a few extra dollars to save for achieving long-term economic success.
The Commission’s recommendations include several options for reforming Kentucky’s tax system. This was a massive undertaking – and we shouldn’t let the challenge undermine opportunity. Policymakers have concrete recommendations and we hope they consider them in a thoughtful, timely manner. We also hope that they consider incremental changes that would result in real benefits for the Commonwealth like an EITC.
To see the entire report – click here.
For information and analysis about some of the other recommendations – see this post from the Kentucky Center for Economic Policy.
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