Study: Kentucky's Poor Pay Highest Taxes
Print out this story, stick it in your wallet, and the next time some tax-break-sucking, McMansion-dwelling, SUV-driving repug starts whining about entitlements, pull it out and whip her to death with it.
Linda Blackford at the Herald:
Low and middle-income Kentuckians pay a larger share of their incomes on state and local taxes than wealthier people do, making the tax system one of many in the country that is inherently unfair, according to a new study.
The Institute on Taxation and Economic Policy in Washington, D.C., studied tax codes in every state and concluded that the vast majority depend too much on sales and property taxes, which then puts a greater burden on the lower-income population.
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The study found that, in 2007, people making less than $15,000 a year paid 9.4 percent of their income to sales, property and income taxes, while those making about $36,000 paid 11 percent.
In contrast, the wealthiest 1 percent of Kentuckians, those making more than $346,000 a year, paid 7.1 percent. After federal deductions, the percentage is 6.1.
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Wealthier people do pay more in income taxes, about 5.2 percent of their income, compared with 1.3 percent for the poorest fifth of the population. But, Gardner said, the income tax is the only one designed to be progressive and does not offset the effects of the other two.
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Steve Boyce, vice-chair of Kentuckians for the Commonwealth, a public-policy group, said the report should spur legislators to pass laws that will replace Kentucky's antiquated tax system with one that is more fair, more adequate and more sustainable.
"It should not disproportionately impact the poor," Boyce said.
KFTC and a host of other public-policy groups are pushing a tax-reform bill from Rep. Jim Wayne, D-Louisville, that would give more tax credits to the poor and raise income taxes on the wealthy, while taxing more services, a growing sector of the economy.
"This study is a great opportunity to take a second look at the tax-reform package we're pushing because it's a step in the right direction," in terms of fairness and adequacy, Wayne said.
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But Gov. Steve Beshear has said he opposes both measures because they would cause tax increases. Instead, he has put his support behind an effort to pass an expanded-gambling bill to raise more revenue.
Of course the Cowardly Waste of Oxygen opposes reforming the tax system to help the non-rich. He's interested in nothing but helping his rich buddies in the gambling, finance and coal industries finish raping the last dime out of the state's hide before it's all gone.
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2 comments:
"But Gov. Steve Beshear has said he opposes both measures because they would cause tax increases. Instead, he has put his support behind an effort to pass an expanded-gambling bill to raise more revenue."
Now, let's parse out the above graf.
"They would cause tax increases" means, in essence, that they would cause tax increases for the wealthy. And we can't have that, now can we, cuz then the wealthy would be less likely (not less able, just less likely) to give campaign contributions. It would be an easy matter to make sure that the relief to the poor would not cause significant increases for upper-income people - it would cause SOME, but not much. I mean, to reduce the tax burden to the poor by some 3-4 percent of gross wages would mean, at a guess, an increase of maybe a quarter percent to those at the top end, maybe less.
But we can't have that.
And the second thought - increasing gambling possibilities - is just so fuckin' callous as not to be believed. Because intentionally or not, increases in gambling possibilities almost ALWAYS impact the poor far more than upper income people. I am reminded of the old adage that "gambling (specifically lotteries, but all forms in reality) is a tax on people who are bad at math."
So we give no relief on taxes or rates, and we add to the tax of gambling, and poor people take it in the ass again.
You ever wonder why Kentucky is so far down the various lists of state accomplishments? This kind of thinking by our leaders is one really big reason.
Gov. Beshear should be ashamed of himself. But he won't be.
I'm not sure if Gov. Fletcher accomplished much, but (perhaps ironically), he improved Kentucky's standing in this pathetic category.
Now, here's something "progressive" to get excited about-- not hammering the working poor with state income (or federal payroll) taxes. And to think that some Democrats want to increase payroll taxes to pay for their health care proposals. For shame!
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