KEY VOTE ALERT: HB 144, "Riggs Amendment", HFA1, HFA2, HFA4
KEY VOTE ALERT
"NO" to HB 144 - Alcohol, Cigarette and Other Tax Increases
The Kentucky Club for Growth urges all Representatives to vote "NO" on HB 144 and any related pieces of legislation that raise taxes and create new taxes on Kentuckians. These key votes will be part of our 2009 Congressional Scorecard.
These proposals compound tough economic times for Kentuckians by raising taxes and imposing brand-new taxes like a sales tax on alcohol purchases. Frankfort has averaged a 5.1% increase in General Fund spending each year over the last five years, and that's including this year's decrease. Our economy is hurting, and these tax hikes will only cause further hardship and negatively impact economic growth.
Alcoholic beverages are one of the most heavily taxed products in Kentucky. More than half - 53 percent - of the retail cost of a typical bottle goes to taxes of some sort. Kentucky already ranks HIGHEST in comparative spirit taxes to most neighboring states. The idea of raising those taxes even higher will cost jobs in businesses related to our signature bourbon, tourism, hospitality and agricultural industries, which are already experiencing tough economic times.
Kentucky currently has one of the highest tax rates on alcohol in the country. This tax increase would make Kentucky's THE highest in the nation.
"YES" on the 'Riggs Amendment' to the Alcohol Tax
The Kentucky Club for Growth urges all Representatives to vote "YES" on the amendment that has been proposed by Representative Steven Riggs that would dedicate alcohol tax revenues to counties where the tax is generated. This key vote is likely to be part of our 2009 Congressional Scorecard.
Higher alcohol taxes unfairly target the 30 wet counties that allow sales - even though ALL of Kentucky benefits from alcohol taxes. If more revenue is the desire, increase the freedom of Kentucky consumers to purchase alcohol. Kentucky's economy will grow as economic freedom is increased. Singling out certain populations to fund government is more of the same for a state that needs something new and different.
"YES" on Ballard and Brinkman Amendments to HB 144: HFA1 and HFA2
The Kentucky Club for Growth urges all Representatives to vote "YES" on the amendments that have been proposed by Representatives Eddie Ballard and Scott Brinkman.
Ballard's Amendment, HFA1, makes a statement against future tax increases. While it would be meaningless in effect, because it is simply ignored by passing another tax, it is a good statement against tax hikes in the future.
Brinkman's Amendment HFA2, sunsets the new alcohol sales tax at the end of the budget cycle.
These key votes are likely to be a part of our 2009 Congressional Scorecard.
"NO" on the 'Marzian Amendment' HB 144 HFA4
The Kentucky Club for Growth urges all Representatives to vote "NO" on the amendment that has been proposed by Representative Mary Lou Marzian. While it would repeal the alcohol tax proposal, it would permanently raise the Kentucky sales and use taxes to 7%, a permanent 'fix' to a temporary and dubious 'problem'. This key vote will be part of our 2009 Congressional Scorecard.
Even including this year's 1.5% decrease in appropriations, spending has grown on average at 5.1% a year over the last five years. Even if there is a budget shortfall this year it does not justify a permanent hike in the sales tax. Kentucky needs jobs, not an increased tax burden on its citizens.
