Governor Matt Bevin calls for comprehensive tax plan in 'Fiscal Responsibility in the Commonwealth'
Kentucky Governor Matt Bevin vetoed the legislature’s proposed two-year state budget and a tax bill that generates hundreds of millions of dollars to help fund it.
“The whole thing is not as thoughtful or as comprehensive as it needs to be,” Bevin said Monday of the tax plan during an almost 30 minute harangue about fiscal responsibility. “If we’re going to do tax reform — and we need to do tax reform — it needs to be comprehensive.”
The tax bill, which was introduced and passed on April 2 before it was available to the public, applies Kentucky’s 6 percent sales tax to 17 services, increases the cigarette tax by 50 cents per pack, and cuts the individual and corporate income tax to a flat 5 percent tax. It also cuts some typical tax deductions, including those for medical expenses, medical insurance, paid taxes and investment income.
In his veto message, Bevin said the legislature failed to pass a balanced budget, as required by state law, citing a letterhe received last week from state budget director John Chilton that said the legislature’s revenue bill will generate about $50 million less than anticipated.