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Variety in the Heartland |
House Passes Tax Package
03/05/10 MRC/AP
A divided Kentucky House committee approved a tax package Wednesday evening that's aimed at raising more than $300 million in new revenue over two years to help plug a massive shortfall confronting lawmakers in balancing the state's next budget.
Supporters on the panel said the proposal would generate money needed to help avoid deep spending cuts in education and human services. Some opponents worried the tax code changes would inflict pain on businesses struggling to emerge from the deep economic downturn.
Two big-ticket items in the plan would temporarily suspend tax write-offs for businesses reporting losses and would speed up sales tax collections. Those two provisions alone would account for more than half the additional revenue in the next two years.
The proposal would not raise tax rates.
Lawmakers are trying to plug a shortfall exceeding $1 billion for the next two-year state budget cycle, which begins July 1st. The shortfall was caused by the steep economic downturn.
The tax proposal cleared the Appropriations and Revenue Committee on a 17-11 vote.
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