AARP Kentucky opposes a recommendation from the Governor’s Blue Ribbon Commission on Tax Reform that could significantly increase the tax burden on retirees.
The commission, established by Gov. Steven L. Beshear (D), proposes a 27 percent cut in the state’s income tax exemption on pensions.
“This move attempts to balance the budget on the backs of today’s retirees, who of all Kentuckians are least able to adjust their retirement strategies,” said Ron Bridges, AARP state director.
Currently, Kentucky exempts up to $41,110 per person on public and private pensions and annuities. If lawmakers approve this proposed change to the tax code, only $30,000 per person in pension income would be tax-free. Social Security income would continue to be exempt from Kentucky income taxes.
For more information, go to AARP Kentucky.
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