State legislators: raise cigarette tax by 40 cents for pension reform

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by WHAS11

WHAS11.com

Posted on February 16, 2013 at 10:02 PM

FRANKFORT, Ky. (WHAS11) – State legislators are currently discussing ways they can reform the state’s pension system and whether they need to raise taxes to do it.

One of the ideas on the table to bring in money needed to pay for pension reform is to raise the state cigarette tax by 40 cents.

It would make the total tax on cigarettes $1 and it could raise $110 million dollars in the first year.

A new poll out his week by RunSwitch Public Relations and Harper Polling shows that 81 percent of voters say the pension system should be fixed using current state revenues and by making policy changes.

19 percent said higher taxes would be needed to fully fund the pension system.

“I think it needs to be in a basket of ideas that we look at. I’m not only interested in paying for pension reform, I’m interested and others are interested in modernizing our tax code so that we have a 21st century tax code tied to a 21st century economy. As our economy takes off and grows, our revenue will,” Governor Steve Beshear said.

Voters who were asked about tax reform are also not in favor of raising taxes.

76 percent say higher taxes hurt the economy and lawmakers should instead find ways to cut spending.
 

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