Kentucky Club for Growth
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March 4, 2009

The Pro-Beverage-Lobby-Anti-Jobs Caucus

On February 26, the Kentucky House passed HB 347, a bill that creates a new sales tax on IT services. It passed 69-25, with 25 Republicans against and 9 Republicans and 60 Democrats in favor.

There is really no debating that this is a horrible bill that will send jobs out of Kentucky. Many IT firms have relocated to Northern Kentucky from Cincinnati because of the favorable tax treatment.

The issue we'd like to bring your attention to, are the legislators who bravely voted against hiking taxes on booze and smokes, but apparently have no problem imposing this new tax; one that is not on discretionary activity and will directly cost the new economy-type jobs that we're trying to attract to Kentucky. We can't really guess the motivation for this divide, except that one issue (beer) has an large lobby that organized beer trucks to drive around the Capitol and dumped bourbon on the Capitol lawn, and the other (IT businesses) is just a collection of small businesses entrepreneurs that did not put on a show.

Anyway, enough hypothesizing, here are those that can draw a distinction between these two taxes:

Rep. Linda Belcher (D-Bullitt, new)
Rep. Scott Brinkman (R-Jefferson, 2008 Rank #33)
Rep. Dwight Butler (R-Breckinridge, #36)
Rep. Ron Crimm (R-Jefferson, #31)
Rep. Marie Rader (R-Jackson, #20)
Rep. Steven Rudy (R-Ballard, #23)
Rep. Arnold Simpson (D-Kenton, #59)
Rep. Kevin Sinnette (D-Boyd, new)
Rep. Ancel Smith (D-Knott, #58)
Rep. Fitz Steele (D-Perry, new)
Rep. Tommy Turner (R-Pulaski, #26)

We wonder what their constituents would think if they learned that their representatives are willing to stand against taxes on smokes but not against taxes on jobs? We may find out...

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06/23/09 : Session Could Finish Tonight; KEY VOTES

06/22/09 : KEY VOTE: HB 1

03/11/09 : Key Vote: HB 236 - Taxing IPTV

03/09/09 : Key Vote: HB 102 - Tolls

03/09/09 : Key Vote: HB 374 - Gas Tax Hike

03/03/09 : Key Votes: Some Good Legislation

03/03/09 : Key Votes: Driving Businesses Out of Kentucky

Drees: Raise gas tax to fund bridge - Pat Crowley, NKY.com

Ky. House nears tax vote - Pat Crowley, NKy.com


Donor records might have similarities - Lexington Herald-Leader

Club for Growth launches in Oregon

The Kentucky Club for Growth is proud to announce its 2007 scorecard rating members of the Kentucky General Assembly on fiscal issues.

How did your legislators do?


Club for Growth eyes spending - by Patrick Crowley, The Enquirer

Political group taking on state - by Stephenie Steitzer, Kentucky Post


Ky. jobless rate hits 11 percent - Courier-Journal...

The Governor's Budget Proposal
This is a reposting of the first article of email update sent out earlier today.  If you don't receive them, you may want to sign up.Here's the Governor's proposal:$147.1 million in spending cuts $81.5 million from a 70-cent cigarette tax...

$373 Million in Cuts
Governor Beshear has told agencies to plan for 4% budget cuts, suggesting that he's either expecting to raise taxes, or not expecting the $456 million shortfall to materialize.  4% of FY 2009 appropriated spending is only $373 million....

Governor Announces Administration Exploring Cuts, Taxes
Governor Steve Beshear announced that he is expecting a $294 million budget shortfall and is going to gauge public reaction before making a specific proposal to address it in December.  Cuts and taxes are on the table.Waiting until December is...

Strapped
The media is so sure there's a revenue problem, that it's hard to even fathom that the reality is that state revenue is increasing.

Business Tax Climate
We're #34 according to the Tax Foundation's 2009 State Business Tax Climate Index.

Financial Troubles
"The Negative Outlook reflects plans to continue to deplete fund balances and virtually drain the budget reserve trust in the current biennium. Further, Fitch remains concerned about the weakened pension funding levels and the commonwealth's rising debt position as an additional $1.65 billion in debt has been authorized for the biennium."

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