This is the second installment of Jim Waters’ Bluegrass Beacon, a now-regular feature of Page One. We won’t take much issue with Jim’s column this week except to say: We’re not sure how $0.01 per U.S. Dollar taxes on tourism is such a terrible thing. It’s not really taxing Kentuckians and it drives a could-be thriving industry throughout the state. That is, if Fletcher’s tourism big dogs could follow the law and spend funds appropriately.
‘Tourocrats’ tax logic, shaft taxpayers when mining for money
By Jim Waters
Tax increases usually don’t pass the logic test.
Take Gov. Ernie Fletcher’s so-called “Tax Modernization” policy. Lawmakers passed this sloppy legislation in 2005 after considerable arm-twisting. It includes the hated Alternative Minimum Tax, which taxes businesses whether or not they make a profit.
Raising taxes on businesses and entrepreneurs while at the same time campaigning about how bringing new jobs to Kentucky is a top priority just doesn’t pass the logic test.
Logic dictates not taxing those companies – at least until they make a profit. Businesses create new jobs that the state’s economic brain trust claims it wants.
Read moreJim Waters: ‘Tourocrats’ tax logic