From the Lexington Herald-Leader:
Gov. Ernie Fletcher, who is seeking re-election this year, told a group of manufacturers today that he is willing to work with them on a controversial business tax. He was referring to the Alternative Minimum Calculation, a change pushed by Fletcher in 2005 that requires all business to pay income taxes regardless of their profitability. The calculation requires companies to figure their tax bill three different ways. Besides taxing the income of profitable businesses, the state now applies a tax formula to companies' gross profits and gross receipts. As a result, some firms had to pay taxes last year for the first time. Others faced a tax bill even though they had no profit.
State revenue estimates show the provision has infused $190 million to $200 million into the state’s coffers since its passage. A year ago, the state was projecting the provision to produce an extra $83.9 million for its first fiscal year, which ended June 30.
Paducah businessman Billy Harper, another GOP candidate for governor, and House Republicans have called for repeal of the tax. Fletcher, after speaking to a conference of the Kentucky Association of Manufacturers, said he was willing to listen to business leaders about possible changes in the so-called AMC tax.
The trade group last year conducted a poll that showed more than 90 percent of the state’s manufacturers favor repealing the alternative calculation. Fletcher said the tax has been effective "in making sure that out-of-state companies" that do business in Kentucky pay Kentucky taxes." "But we realize that no system is perfect," he added.
Asked if the tax should be repealed, Fletcher said he did not think this legislative session is the appropriate time to do that. There is no consensus to do away with the tax at this time, he said, quickly adding that "if the General Assembly wants to, I’d look at it."
Harper, Fletcher and former U.S. Rep. Anne Northup of Louisville will face off in the May 22 Republican primary for governor.
Fletcher is willing to work with business? Nice attempt LHL.
Fletcher did not promise repeal or reconsideration. Actually, he more than cuddled with his tax. (Asked if the tax should be repealed, Fletcher said he did not think this legislative session is the appropriate time to do that. There is no consensus to do away with the tax at this time.)