Tax Reform for Fairness and the Future

I believe in the urgent necessity of tax reform for I see government as a positive force for good, not an evil to be flushed down the tub. My grandfather used to say that taxes were the cheapest rent he paid to live in the greatest country in the world. He was so appreciative of America—and his new Kentucky home—that he easily saw the many ways that his government helped foster an environment in which he could flourish.

Indeed Kentucky is officially a “Commonwealth” in recognition that we are all in this together—that we pool some of our resources to create public services for our COMMON GOOD.

But our state is in serious trouble. We are starving for funds essential to continuing those services so vital to our well being. Whether it’s educating our youth, healing our sick, securing our towns or protecting our lands and skies, investment in public services makes the kind of place that attracts and keeps job-creating businesses.

Since 2001 budget cuts have meant $1 BILLION has been lost to services that benefit Kentuckians and by 2010 we will be $2.3 BILLION short UNLESS we reform and repair our tax system NOW.


“Revenue-neutral” just won’t cut it. That would just put us in the same box as Colorado, which is disastrously under-funded. On the contrary INCREASED public investment does more than teach a man or woman how to fish—it helps insure that the ponds are clean, the roads to get there are in good repair and that their children are healthy and well educated.

I believe in the urgent necessity of tax reform because I can’t stomach sitting quietly by while Kentucky’s poorest citizens get taxed the most. The poorest 20% of us—those least able to pay—are paying 13% of their income in state and local taxes, compared to only 10% by the richest 20%. This is wrong, this is immoral and it is certainly against the values most Kentuckians hold dear.

Those of us with full bellies, fancy cars and the best seats at the games may not fully appreciate what just a few extra dollars a week means to those who live day to day, wondering how they will survive, much less prosper.

I believe in the urgent necessity of tax reform to insure corporations contribute our fair share to the general fund. My grandfather was grateful that his taxes, his public investment, made him part of the solution.

But today corporations are not paying our fair share. While businesses benefit from an educated populace, fire and police protection, roads and infrastructure we are contributing only 5% to the general fund as compared to 10% in 1990. So it is essential to close loopholes and treat all businesses equally, putting us on a level playing field. It will only serve to benefit our companies and make Kentucky a better place in which to do business.

Finally, I believe in the urgent necessity of tax reform because I can’t abide the deterioration of our social contract, the loss of faith in our “united we stand” sense of community. I don’t like the “each man for himself” trend. I much prefer the system that got us here, one with compassion and people coming together. Nothing is more Biblical than this concept of community caring and sharing.

The “no new tax” pledge and its goal of shrinking government so it can be flushed away is irresponsible and counterproductive. We’ve been down that road before! Where too little government allowed the wolves to guard our henhouse and the powerful to run roughshod over the public interest. It spelled disaster for our markets, destroyed our economy, our spirit and our country.

Fair and proper tax reform is an investment for our children and theirs. It is essential for the Public Interest, for our common good, for our COMMONWEALTH.