There is a proposal in Frankfort to lower the sales tax and eliminate the income tax. This is in addition to the potential adjustment to the property tax. It’s a start but it still hammers the working person.
Gov. Beshear announced that he would roll back the property tax on vehicle registration so that the people of the commonwealth don’t get hit with an obscene 40 percent increase when they register their cars and trucks. It’s a nice idea, but the initial mandate came from Frankfort in the first place, so whoever came up with that should be fired.
Next, Beshear and Representative Angie Hatton declared they were proposing to cut the sales tax from 6 percent to 5 percent for a year. That’s all great and fine and it shows they are aware that Kentuckians are feeling the pinch. But more needs to be done.
We are experiencing inflation at a rapid rate. People are not working because they are getting free money from the government. We soon will see a recession and with the Russian invasion, we will see prices skyrocket, especially in the energy sector.
Congress needs to get Sleepy Joe to open up the XL pipeline. Energy dependence on places like Russia is abserd. That’s an issue for another day.
Lowering the sales tax rate by 1 percent will not do a damn thing when the cost of living continues to rise. If you spend $100 on taxable items at the store you pay six dollars in tax. If the sales tax rate is lowered to 5 percent you only pay $5 in sales tax. In theory, that seems to save the consumer $1 per every $100 spent.
What is not being taken into consideration is that fact that the cost of goods continues to rise, which will outpace that $1 savings. Meat, milk, gas, eggs, paper products, services and everything else is rising. So that $100 price tag at the grocery store on taxable items is now costing upwards of $115 an your tax at 5 percent is $5.75. The tax on that same amount at 6 percent is $6.9 so in essence you save $1.15.
That’s great but we are still paying 10-15 percent higher on goods and services. Gas alone is up over 20 percent. The cost of goods needs to be lower and then Kentuckians will have a better chance of making ends meet.
Here’s where the working people get hammered. We see higher prices for everything and will save about $1 for every $100 spent. On top of that we have to pay a state income tax, a city occupational tax and federal taxes. You know who does not pay income tax? The people collecting a check, the unemployed dope dealers and the people working under the table for cash. But they consume goods.
Even the dope dealer enjoys a Snickers bar every now and then. So why not eliminate the state income tax and raise the sales tax 1 percent? This way everyone pays their fair share across the board and the working people who are driving the economy may have a little left over to fill up their tank.
Who knows, eliminating the state income tax may even, God forbid, force people to get jobs? I realize there are very qualified people who are out of work at this time. The last thing this economy needs is a person with a doctorate degree, working at the car wash to make ends meet.
Eliminating the state income tax gives automatic raises to every working person in Kentucky. That includes teachers, state workers, police and even Coach Cal. So the teachers and police who desperately need raises get one and the state is not scratching their heads trying to figure out where that money for their raises comes from now and down the road, its self funded.
The raise comes from the elimination of their state income tax.
The state will run off the extra sales tax so even the drug dealer will be forced to contribute by purchasing that Snickers bar. It’s a whole other story about people who steal stuff; that is for another column.
Raising the sales tax forces everyone to contribute, in addition to the working people. I’m talking about the deadbeats and the people who should be working but choose to stay home. They get money from somewhere but don’t pay income tax, so why not tax them at the register? When they buy goods they pay the same amount of tax as the working person who is struggling to provide for their family.
I went to family court and helped get a guy out of jail to work for us in our production facility. He was in arrears in child support and was in the slammer. He showed up one day and never came back. He’s on the lam now with a warrant out on him, but you know damn well he’s buying cigarettes and Mountain Dew. If the lawmakers cut the sales tax they are giving creeps like him a break. He needs jail time, not a 1 percent break.
The system is broke. We need solid measures that are equally fair and not equally unfair to the working people.
Thanks for reading the Floyd Chronicle and Times.