Grover Norquist's "no tax pledge" was signed several years ago by current Kentucky legislators; i.e., Sen. Tom Buford, Sen. Julie Denton, Sen. Carroll Gibson, Sen. Ernie Harris, Sen. Vernie McGaha, Sen. Katie Stine, Sen. Robert Stivers, Sen. Gary Tapp, Sen. Elizabeth Tori, and Sen. Jack Westwood.
RECOMMENDED REMEDY is to cut state expenses, enhance tax resources through "revenue neutral" tax strategy and collecting millions of tax evasions is GOOD, FAIR, EQUITABLE GOVERNMENT :
Evidence is in that December 2007 recession has driven consumers to "cash basis". Such strategy is trouble for states like Kentucky who depend on Sales and Income taxes! Recession is estimated to be 31 months old.
Governor and General Assembly should update Kentucky's tax base by adding services and cutting another $822 million in appropriations. Why? It's a fact after living 31 months into this severe depression, unemployment still struggles and no one knows for sure but indications are lot's of Kentucky consumers have lost jobs, dropped down into jobs making less money during past 31 month period.
Economic experts' target the longevity of severe recession lasting till April, 2011 at the earliest or April 2012 as a maximum. This conjecture could be altered by "deflation" rearing it's head, as it has done in Japan for past 10 years. Kentucky Sales and Income tax resources will not generate enough tax resources to cover benefits and services costs! Experience should dictate Ky stewards to:
If Congress does or does not pass legislation allowing unemployment benefit funding for Kentucky's 2010-2012 biennium budget they should, once again, address 2010-2012 budget's integrity by calling on all legislators' including those "no-tax pledge signers"to legalize 2010-2012 biennium budget by modernizing Kentucky's obsolete tax base simultaneously targeting $822 MILLION OF CUTS untouched when "no tax pledge" stewards' put together 2010-2012 budget the first two times. In addition they should:
CUT AN ESTIMATED $300 MILLION OF TAX EXEMPTIONS; HOMESTEAD EXEMPTION;
CUT OUT AN ESTIMATED $400 MILLION OF CORPORATE TAX SHELTERS;
CUT OUT AN ESTIMATED $100 MILLION OF NON-MERIT STATE JOB HOLDERS; I.E., 1,600 JOBS;
CUT OUT AN ESTIMATED $ 22 MILLION FROM PROPERTY TAX ADMINISTRATION COSTS;
COLLECT AN ESTIMATED $300 MILLION FROM KY MOTOR VEHICLE OWNERS' MIS-REGISTERED MOTOR VEHICLES;I.E., USING OUT-OF-STATE, DEALER,
DELINQUENT, GOVERNMENT PLATES, ETC.
IMPLEMENT 'REVENUE NEUTRAL' STRATEGY BY COMBINING WEIGHT-DISTANCE TAX & MOTOR FUELS REVENUES WITH TRUCK REGISTRATION FEE REVENUE, THEN ELIMINATING TRUCK WEIGHT-DISTANCE TAX
