Lassiter's 2010-2012 budget cuts

2001 studey noted "It is apparent various corporations are
increasingly taking advantage of structural weaknesses and
loopholes in state corporate tax systems". 2001 study puts
Kentucky's loss in revenue due to tax sheltering at $150
million in 2001.

2010 estimate of Corporate Tax sheltering costs state budget
estimated $400 million dollars!

Therefore, Lassiter's 2010-2012 executive budget APPROPRIATIONS
and TAX RESOURCES are listed below:

Ms Lassiter's 2010-2012 Executive Budget above needs following cuts in APPROPRIATIONS:

RECOMMENDED RECOMMENDED
2010 2012

EXECUTIVE BRANCH $9,366,201,100 $9,299,774,700 -0.7%

JUDICIAL BRANCH $ 271,590,900 $ 327,736,000 1.2068%
LEGISLATIVE BRANCH $ 52,276,600 $ 51,231,000

TOTAL APP: $8,518,028,900
+$1,155,713,500 (2010-2012 biennium budget total cut)

$9,673,742,400

Goal of 2010-2012 biennium budget is to cut anticipated budget growth in
appropriations from 2010 to 2010 by

$1.155 billion

as follows:

CUT $350 OUT OF ESTIMATED $900 MILLION STATE TAX EXPENDITURES

Tax credits,
Tax exemptions,
Tax deferrments,
Tax exclusions,
Tax deductions,
Prefrential tax rates

CUT $400 MILLION FROM CORPORATE TAX SHELTERS;

Cut $400 million from corporate tax shelters

CUT $100 MILLION FROM NON-MERIT PERSONNEL COSTS:

CUT 2,000 NON-MERIT POSITIONS PAYING >$80,000 TO $500,000
ANNUALLY

CUT $ 22 MILLION FROM PROPERTY TAX ADMINISTRATION COSTS;

REDUCE # OF PVAs FROM 120 TO 17 SAVING ESTIMATED $10 MILLION &
PARING DOWN ESTIMATED 680 DEPUTY PVAs SAVING ESTIMATED $12
MILLION DOLLARS.

COLLECT ESTIMATED $300 MILLION OF MOTOR VEHICLE TAX EVASION

KY OBSOLETE 2010 TAX BASE

July 8, 2010
The Busines...
Consumer Credit in US Declined More Than Forecast

BusinessWeek - Vincent Del Giudice - ‎July 8 (Bloomberg) -- Consumer borrowing in the US dropped in May more than forecast, a sign Americans are less willing to take on debt without an improvement in the labor market.

Consumer borrowing down sharply in May The Associated Press

Credit-card debt drops 10.5% in May Chicago Breaking Business - Tribune ANF - HOG Google FinanceCredit Union Times - MarketWatch - The Atlantic (blog)
all 172 news articles »

ATTENTION KENTUCKY LAWMAKERS:

"Another reason Kentucky lawmakers should seriously consider modernizing Kentucky's obsolete tax base. As a result of the December 2007 severe recession consumers have adopted a "cash basis" that deepens and prolongs deficits for Kentucky whose obsolete tax base depends on income and sales taxes!

2010-2012 STATE BUDGET PASSED BY KY LAWMAKERS LEAD BY KY GOVERNOR BESHEAR CUT:

GOVERNOR OFFICE 20.3%
COMMISISON ON WOMEN 21.2%
ALCOHOL BEVERAGE CONTROL 24.9%
DEPARTMENT OF PARKS 3.3%
CENTER FOR ARTS 23.2%
JUVENILE JUSTICE 10.8%
PUBLIC SCHOOL FUNDING 1.0%
PRE-SCHOOL 4.4%
EXTENDED SCHOOL SERVICES 60.3%
U OF L 9.0%
KET 28.0%
CB SERVICE 8.5%
PUBLIC HEALTH 16.9%

BEFORE MAKING CUTS ABOVE, LAWMAKERS/GOVERNOR SHOULD HAVE INCLUDED ESTIMATED $822 MILLION OF CUTS BELOW IN 2010-2012 BUDGET:

$300 MILLION OF STATE TAX EXPENDITURES (TAX EXEMPTIONS, DEFERRALS, DEDUCTI0NS, CREDITS, PREFRENTIAL TAX RATES, EXCLUSIONS)

$400 MILLION OF CORPORATE TAX SHELTERS

$122 MILLION OF NON-MERIT AND PVA PERSONNEL COSTS

$200 COLLECTING ESTIMATED OF CAR & TRUCK TAX EVASION

MODERNIZED OBOSOLTE TAX BASE

COMBINED ALL STATE RETIREMENTS INTO ONE: I.E., KERS, SPRS, KRS AND TEACHER RETIREMENT;

REPLACE DEFINED BENEFIT WITH DEFINED CONTRIBUTION RETIREMENT SYSTEM;

LEGISLATIVE RELIEF TO 55% OF KY COUNTIES WHOSE CURRENT TAX RATES HAVE OR WILL DRIVE THEM INTO BANKRUPTCY;