Taxes are not the answer; no broad-based increases
I have opposed broad-based tax increases in Kentucky, and I will continue to oppose them during this legislative session. I will not threaten the survival and growth of our businesses at this perilous moment. I will not burden our families as they
struggle to survive. And I will not jeopardize our fragile recovery. Last October, the national Tax Foundation ranked Kentucky's Business Tax Climate 19th best in the nation, up an incredible 15 spots in one year. We're ahead of neighbors Illinois,
Ohio, West Virginia and Tennessee, which was ranked 27th. Taxes are not the answer. And neither is decimating our priorities--education, creating jobs and public safety. Instead, we have acted in a calm, strategic and measured way to rein in government
with an eye not just on short-term survival but also on long-term progress. And that strategy is working. The light at the end of the tunnel is real, and we are moving closer to it.
$12B in federal economic stimulus as state block grants.
Beshear signed $12B in federal economic stimulus as state block grants
The nation's governors urge you to include state countercyclical funding as part of your legislation to stimulate the economy. This would include $6 billion in Medicaid assistance by freezing scheduled federal FMAP reductions and increasing all states' F
Congress approved $20 billion in assistance to states, including $10 billion in Medicaid and $10 billion in block grants. The governors' current stimulus proposal is essentially the same, with the exception that it is a total of $12 billion as opposed to $20 billion. This proposal can be enacted quickly, as there is precedent and it is timely, temporary and targeted.
Additionally, governors appreciate federal efforts to use tax policy to get additional money into the hands of consumers and businesses to stimulate the economy. When considering tax changes to spur economic growth, governors urge Congress and the Administration to follow the maxim of "Do no harm" by avoiding changes at the federal level that would diminish state tax revenues or force state actions that would undermine the effectiveness of federal efforts.
We look forward to working with you to enact the appropriate stimulus program.
Source: Letter from 37 governors to House & Senate Leadership NGA-0801TX on Jan 28, 2008
