Gov. Steve Beshear announced his plan Tuesday to modernize Kentucky’s tax code. The recommendations include:
-Reducing individual income tax rates.
-Creating a refundable earned income tax credit targeted to low-wage earners.
-Lowering the top corporate income tax rate to 5.9 percent from 6 percent.
-Expanding the state’s research and development tax credit.
-Exempting inventory from state property tax.
-Creating an income tax credit for the bourbon industry.
-Exempting sales and use tax on certain equine products.
-Lowering wholesale tax on beer, wine and distilled spirits.
-Increasing state cigarette tax to $1 per pack.
-Increasing tax rate on other tobacco products, commensurate with cigarette rate increase.
-Creating tax on e-cigarettes.
-Broadening the state sales tax to selected services.
-Reducing retirement income exclusion for taxpayers with income of more than $80,000. Phasing it out for income over $100,000.
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