Tax Reform Task Force
GLI’s Tax Reform Task Force is made up of tax experts from throughout our region and focuses specifically on tax policy and tax-related issues at the local, state, and federal levels. The Task Force’s recommendations laid the groundwork for GLI’s tax reform platform in 2018 (see below), which, in turn, helped shape the tax reform package passed by the Kentucky General Assembly in the 2018 session. This GLI-backed legislation led the Tax Foundation to move Kentucky’s tax competitiveness ranking from 33rd in the nation to 23rd. Key elements of the 2018 tax reform package included:
- Raising the cigarette tax from 60 cents to $1.10 per pack. An increase to $1.60 would have had a more positive impact on health outcomes, but a 50 cent increase is a positive step forward.
- Lowering the top corporate and individual income tax rates and establishing a fairer, flat rate of 5 percent.
- Adopting a single-factor apportionment formula based on sales.
- Phasing in a new inventory tax credit to effectively repeal the inventory tax without removing a key revenue source for local governments.
- Preserving the Angel Investor Tax Credit program by reintroducing the credit in 2021 with a new annual cap.
- Preserving the Kentucky Jobs Retention Act, one of Kentucky’s most important economic development and jobs retention tools.