Kentucky gives away $12 billion a year in tax breaks and collects $10 billion a year in tax revenue.
Gov. Matt Bevin has reportedly been seeking advice from Arthur Laffer, who was heavily involved in Kansas’ tax reform in 2012. A byproduct of his upside-down tax plan has left Kansas in recession. Louisiana and North Carolina executed similar Laffer Curve tax breaks that left both states in financial crisis.
Laffer’s archaic tax ideas create an extremely high tax burden on the middle and lower economic classes to sustain the state, while simultaneously giving huge tax breaks to the upper class and big businesses. This strategy makes a state only as strong as its poorest classes.
Since this isn’t sustainable, the next step would be to increase the sales tax, which has been proven to further overburden the middle and lower classes and still relies on the poorest residents to hold up the state’s economy.
In 2016, the median income for a Kentucky family was $56,000 and the average income was $45,000. If Laffer’s ideology is followed, the average Kentuckian will bear the brunt of the tax, while big companies and the upper class walk away with tax breaks and benefits.
If you’re concerned by Laffer’s involvement in future tax plans, please tell Bevin or your state legislators.