KCEP: HB 8 would blow massive and growing hole in state budget

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A statement from Jason Bailey, executive director of the Kentucky Center for Economic Policy:

“HB 8 would blow a massive and growing hole in our state budget that will inevitably force huge budget cuts, large tax increases on middle- and low-income Kentuckians, or both. By eliminating the income tax over time — our biggest revenue source which pays for 40% of Kentucky's budget — HB 8 will dig our state into a deeper and deeper hole and provide no way to fill it.

It goes far beyond giving away our short-term surplus, and will force painful, permanent cuts in the near future to our schools, health care, infrastructure and other investments. And the big winners are the wealthy: 65% of the tax cuts in HB 8 go to the wealthiest 20% of people, and the richest 1% will get an immediate average tax cut of $11,000 that will just get bigger over time.

For the sake of Kentucky's future, I hope cooler heads prevail in the Senate who recognize the need to be fiscally responsible, meet our constitutional responsibility to pass balanced budgets, and protect our core investments in education, Medicaid, and other needs from being ravaged for tax cuts to the wealthy.”

When it comes to the GOP tax bill, the big winners are the wealthy: 65% of the tax cuts go to the wealthiest 20%, and the richest 1% will get an immediate average tax cut of $11,000 that will just get bigger over time.

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Click here to read KyPolicy's full analysis of how HB8 would devastate funding for Kentucky’s schools, health, human services, infrastructure and other needs, all to give away essential revenues for a tax cut skewed heavily to the rich.


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