Despite Kentucky’s high rankings in economic growth the past year, the current tax code has not brought in enough revenue to cover the state’s expenditures.
Last February, Gov. Steve Beshear announced the creation of his Blue Ribbon Tax Commission, charged with examining the state’s tax code and recommending ways to reform it. A report from consultants to the commission gave a more detailed look at the revenue problem. “Without fundamental reforms Kentucky could face a $1 billion shortfall by 2020, and could find itself at a competitive disadvantage to neighboring states for business growth, retention, and recruitment,” the consultants’ report states.