The legislation drafted by Reps. Bill Farmer of Lexington and David Floyd of Bardstown would replace the income tax by spreading the sales tax to a host of services that are currently exempt, including plumbing, roofing and other contracting work, and some consulting work.
Not only that, but they’re also calling for dropping the sales tax from 6 cents to a nickel on every dollar of goods purchased.
Read the rest of the story here: http://bluegrasspolitics.bloginky.com/2009/01/02/farmer-kill-income-tax-spread-sales-tax-to-services
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As it exists now, this situation would result in a carry forward loss that could be used to offset income from the following year. This would be devastating to growing small businesses and the legislation is ripe with exclusions for VERY strange industries in KY. I urge people to read the details because that is where the devil lies in this legislation. As written I do not support it at all.
ReplyDeleteAbove comment was truncated. Should have read: This legilation sounds great but they are replacing the income tax for businesses with a gross receipts tax. This means that if my sales were $100,000 but my costs were $110,000, I would owe taxes on the $100,000. As it exists now, this situation would result in a carry forward loss of $10,000 that could be used to offset income from the next year. This would be devastating to growing a small businesses and the legislation is ripe with exclusions for VERY strange industries in KY. I urge people to READ the details in this bill because that is where the devil lies in this legislation. As written I do not support it at all.
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