Focus on Kentucky Tax Reform

(Witness, Summer 2009 Newsletter of the Catholic Conference of Kentucky)

Because Kentucky operates a yearly budget deficit, social services have been cut. Unless the Kentucky tax code is reformed, the quality of life in the Commonwealth will diminish for those who are not wealthy. 

Kentucky Tax and Budget Facts

• In 2005, 118,000 children in our state have no health insurance.

• Future revenue shortfalls risk benefit and eligibility reductions in Medicaid.

• The richest 1% pays the least percentage of their income in Kentucky taxes.

• Since 1995, 26 different state tax cuts have cumulatively cost Kentucky $2.24 billion.

Moral Principles for Tax Reform

Catholic social teachings offer two moral principles that apply directly to taxation: the common good and preferential option for the poor.

• The Kentucky code should first assure that the basic needs of all are addressed before other appropriations are made. The budget should not be balanced on the backs of poor people.

• All citizens and corporations have the right and responsibility to pay taxes because that represents one way citizens and corporations give something back to society.

• Tax cuts should result from a reduction in revenue needs, not as a political decision to satisfy special interests.

• Taxation in any form should be based on one’s ability to pay. Catholic social teaching favors a more progressive form of taxation.

• The poor should not pay a disproportionate amount of income in the sum total of taxes paid. 

For More Information:

Visit the website of the Catholic Conference of Kentucky, www.ccky.org and

Kentucky Council of Churches, www.kycouncilofchurches.org