Tax Reform
In 2018, the General Assembly passed a reform of Kentucky’s tax structure to lower the personal and corporate income rates from 6% to 5%. In addition, they selected a list of services on which to extend the 6% sales tax. NFIB led the fight against this sales tax expansion and went so far as to convince Gov. Matt Bevin to veto the bill. However, the General Assembly overrode his veto and the law went into effect. Now signs are pointing to another round of Tax reform in 2020. Initial reports are that the sales tax will be expanded to include even more services in order to lower the individual and corporate tax rate again. The goal this time is to reduce it from 5% to 3%. NFIB members will be asked their opinions on whether this change will provide enough tax relief to offset the inclusion of more services in sales tax liability.
Sole Proprietors
During the 2018 Tax reform, NFIB Kentucky led the way in ensuring that LLCs and S corporations were treated the same as large corporations. With more tax reform on the horizon, it will be more important than ever to ensure that small business receives all of the benefits that large corporations do.
Healthcare Mandates
NFIB Kentucky will continue to lead the fight to stop efforts to require small businesses to cover additional conditions and treatments. Such mandates may be well-intentioned, but they further drive up the cost of health insurance.