Commerce Lexington has long advocated for comprehensive tax reform that improves Kentucky’s competitiveness for business investment and job growth, creates a predictable and equitable business environment that encourages economic activity, and provides sufficient revenues to meet critical priorities. We are encouraged that the leadership of the House and Senate, and members of the General Assembly are taking steps to address pension and tax reform, two of the most important public policy issues facing Kentucky. Over the past year, we have worked with legislators, the State Budget Director and other chambers to provide input for comprehensive tax reform. These are conversations that must continue in order to strengthen the Commonwealth’s economic vitality. States that deal with consequential issues, like pension and tax reform, are the states that move forward.
Because tax reform is complicated, there can be unintended consequences. While no legislation is perfect, HB 366 is a start to improving Kentucky’s business climate and transforming our ability to make investments in education, infrastructure, economic development, healthcare and public safety. Since this bill moved quickly through the process, we continue to reach out to a cross-section of our membership, including small businesses, to better understand its impact and solicit feedback.
Although we recognize that a number of businesses will benefit from the reforms, while others may not, we believe this to be a first step in the process to modernize Kentucky’s tax code. We strongly urge the Governor, legislative leaders and business to continue to come together through open dialogue about how we can further improve tax policies and Kentucky’s competitiveness.