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Fri November 9, 2012
Tax Commission Looks At Exemption On Pensions
FRANKFORT, Ky. -- A panel appointed by Gov. Steve Beshear to recommend tax reforms is considering a proposal that would result in more retirees having their pensions taxed.
Lt. Gov. Jerry Abramson, chairman of the Blue Ribbon Commission of Tax Reform, said Thursday members may recommend tweaking a policy that exempts annual pensions of $41,100 or less from taxes. Abramson said commission members are looking at decreasing that exemption to pensions of $15,000 or less.
The group is tentatively scheduled to meet again on Nov. 19.
Beshear appointed the panel earlier this year to recommend a simpler tax code that would generate enough revenue to meet state needs even during recessions.
The group has already ruled out implementing a 6 percent tax on groceries, which would have generated some $500 million a year.