Kentucky Speaker of the House of Representatives Would Broaden Sales Tax and Repeal Corporate Income Tax
During a Kentucky political talk show on May 26, 2011, Kentucky Democratic House of Representatives Speaker Greg Stumbo stated that he supported broadening Kentucky’s sales tax by repealing most exemptions from sales tax and potentially applying sales tax to services. He also indicated that he would support a legislative initiative repealing state corporate income tax.
Stumbo said that he would support a proposal where virtually all sales tax exemptions were repealed, other than those for food and drugs. He also indicated that under such a proposal, sales tax could be imposed on all services, including accounting and legal services, which are generally exempt from sales tax under current Kentucky law. Stumbo added that 2012 might not be the best time to make sweeping changes to Kentucky’s tax structure since the Kentucky General Assembly would be working to enact a new two-year budget.