Larry Baker, senior partner at Grant Thornton in Cincinnati, is On the Money with Chris DeSimio to discuss tax strategies for individuals and businesses for the 2012 -2013 tax season.
A new report by the Institute on Taxation and Economic Policy shows a big gap between Kentucky’s income levels on who pays taxes.
The report says Kentucky’s top 1 percent income bracket pays roughly 5 percent of the state’s income tax, while the bottom 20 percent pays 9 percent.
Middle income levels are saddled with a higher percent, according to the report.
Jason Bailey, director of the Kentucky Center for Economic Policy, says the numbers show tax reform needs to happen quickly in Kentucky to better balance the burdens.
Cincinnati residents who work outside the city limits could soon lose their income tax reciprocity. City Council could vote this week to approve the Manager's recommendation the credit be eliminated next year. Ohio local income tax is assessed primarily to the municipality where it's earned and secondarily to where an individual lives. Cincinnati has always allowed residents who work outside the city to reduce their city income tax by the amount they pay to other municipalities.