"The Kentucky business community has much at stake in the May 22 gubernatorial primary. Business Lexington posed five key questions to the three Republican and six Democrat candidates. In some cases,
as noted, the candidate's response did not comply with our request for a clear and concise one-word answer. If a candidate indicated conditions for his or her answer, we have noted that as well.
Ernie Fletcher, Republican
Do you favor a repeal of the Alternative Minimum Tax? (yes or no):
No
Do you support amending the state constitution to permit communities to levy by rties to levy by referendum a local sales tax option to fund specific projects? (yes or no):
No
Should Kentucky expand or reduce its use of tax incentives in support of economic development? (expand/reduce/maintain):
Maintain
Are you in favor of extending bonding authority to the state's universities? (yes/no):
No
How would you improve the business climate in Kentucky?
I have cut income taxes for 78% of working Kentuckians, cut corporate income taxes 30% and repealed the corporate licensing tax and tax on intangible property. I have created new health insurance products and started the ICARE program to make health insurance more affordable for small businesses. I have implemented two rounds of regulatory reform designed to make the process more transparent and less cumbersome to small businesses.
In my four years as Governor I have constantly worked to improve Kentucky's competitiveness.
I opened Kentucky's fifth international office and have worked to run government efficiently, delivering record investments in transportation, infrastructure and education, and established the Office of Energy Policy with the goal of developing Kentucky's energy economy to maintain our attractive rates. I made a commitment to create a business friendly environment in Kentucky, and will continue my efforts to create jobs and opportunity in this state.
Billy Harper, Republican
Do you favor a repeal of the Alternative Minimum Tax? (yes or no):
Yes
Do you support amending the state constitution to permit communities to levy by rties to levy by referendum a local sales tax option to fund specific projects? (yes or no):
Yes, with conditions
Should Kentucky expand or reduce its use of tax incentives in support of economic development? (expand/reduce/maintain):
Maintain, with conditions
Are you in favor of extending bonding authority to the state's universities? (yes/no):
No
How would you improve the business climate in Kentucky?
To improve Kentucky's business climate, I will immediately move to repeal the AMT and transform our economic growth strategies and incentives to focus more on small businesses. As a state, we need to move away from devoting all of our time and energy into attracting the next Toyota or large manufacturer. While another corporate citizen of that size certainly would be welcome, we need to focus more attention on how we grow Kentucky businesses.
If we can add 1 job to 5,000 small businesses across this state, we will have exceeded the economic impact of a large company. Those jobs will stay in Kentucky and have the tangible benefits of supporting local businesses, generating local tax revenues and boosting local communities. We also need to encourage businesses to become more involved in our schools through formal mentorship programs. Students need to understand the importance of Algebra or English, for example, to careers in the fields of engineering or journalism. We simply cannot create high paying jobs here in Kentucky without a skilled workforce.
Anne Northup, Republican
Do you favor a repeal of the Alternative Minimum Tax? (yes or no):
Yes
Do you support amending the state constitution to permit communities to levy by rties to levy by referendum a local sales tax option to fund specific projects? (yes or no):
Yes
Should Kentucky expand or reduce its use of tax incentives in support of economic development? (expand/reduce/maintain):
Expand
Are you in favor of extending bonding authority to the state's universities? (yes/no):
Yes
How would you improve the business climate in Kentucky?
I would bring a change in philosophy and show some real leadership. First, we will repeal the Alternative Minimum Calculation in its entirety. It is a tax on vulnerable small businesses, some in a critical phase in their first few years of business. The AMC was created by this administration and the tax is counterproductive to the economic vitality of Kentucky.
Bad tax policies have bad consequences: During the past several years the U.S. has enjoyed steady economic growth but Kentucky has fallen behind. In 2003, we had the 39th worst unemployment, but today we are 46th. We must develop plans to spur regional economic growth. Also, we would develop area specific economic development plans building on the resources and opportunities that exist. For example: coal and wood in eastern Kentucky; agriculture, biodiesel production in western Kentucky.
Finally, we must re-establish the "Bucks for Brains" Program and build the support system to capture more of the financial benefit of the commercialization of the scientific breakthroughs that are developed. A much more complete plan is on my Web site, www.northup-hoover2007.com. I am proud to say I actually wrote it.
Steve Beshear, Democrat
Do you favor a repeal of the Alternative Minimum Tax? (yes or no):
Response did not comply with format
Do you support amending the state constitution to permit communities to levy by rties to levy by referendum a local sales tax option to fund specific projects? (yes or no):
Response did not comply with format
Should Kentucky expand or reduce its use of tax incentives in support of economic development? (expand/reduce/maintain):
Response did not comply with format
Are you in favor of extending bonding authority to the state's universities? (yes/no):
Yes
How would you improve the business climate in Kentucky?
In order to help Kentucky's businesses flourish and grow, state government has to be an active partner, not a roadblock. I will work to improve the state's business climate and make it easier for our businesses to do business in Kentucky by:
Making Kentucky's Cabinet for Economic Development Business Information Clearinghouse (BIC) more responsive and available online.
Reducing unnecessary paperwork and streamlining the application process for economic incentive programs.
Making Kentucky's venture capital tax credit more attractive by providing a tax credit of up to 50 percent of the investment instead of the 40 percent that it is currently.
Assisting rural communities in making investments in technology infrastructure.
Enhancing technology transfer and commercialization opportunities from Kentucky colleges and universities to increase our economic competitiveness.
Gatewood Galbraith, Democrat
Do you favor a repeal of the Alternative Minimum Tax? (yes or no):
Yes
Do you support amending the state constitution to permit communities to levy by rties to levy by referendum a local sales tax option to fund specific projects? (yes or no):
No
Should Kentucky expand or reduce its use of tax incentives in support of economic development? (expand/reduce/maintain):
Response did not comply with format
Are you in favor of extending bonding authority to the state's universities? (yes/no):
No
How would you improve the business climate in Kentucky?
By improving education for everyone so that a high school graduate from Kentucky can at least make change for a ten dollar bill in their head and read a set of instructions.
We must fund further education, not just higher education because our C and D students should be trained into employability also. Without raising taxes, we can give each graduate a $5,000 voucher for books, tuition and fees to any institution of further learning in Kentucky. No creature comforts and no cash ever hits the students hands. It only materializes when it is paid by the Commonwealth to the institution. We must give our students hope and a vision beyond high school. This should do it.
We should also give incentives for existing industries to acquire state of the art environmental standards so we can attract "green" industries.
Steve Henry, Democrat
Do you favor a repeal of the Alternative Minimum Tax? (yes or no):
Yes
Do you support amending the state constitution to permit communities to levy by rties to levy by referendum a local sales tax option to fund specific projects? (yes or no):
Yes
Should Kentucky expand or reduce its use of tax incentives in support of economic development? (expand/reduce/maintain):
Expand
Are you in favor of extending bonding authority to the state's universities? (yes/no):
No
How would you improve the business climate in Kentucky?
For our economy to work, we need our state government to get its house in order.
That's why I'll have my Lieutenant Governor, Fayette County PVA Renee True, lead a top-to-bottom review of state government functions to root out waste, which is everywhere.
I believe that with the right priorities, Kentucky can compete and win in the world economy.
That's why my "Coalfields to Cornfields" Initiative will make Kentucky a leader in the coming renewable energy economy.
It's why I'll bring back the "Bucks for Brains" program, to accelerate Kentucky's participation in cutting-edge medical research.
It's why I support an aggressive expansion of math and science education throughout our educational system.
And it's why my "Buy Kentucky First" program will move Kentucky companies to the front of the line for state government contracts.
Kentucky can't wait for change. It's time we deliver real results for Kentucky families.
Otis Hensley, Democrat
Do you favor a repeal of the Alternative Minimum Tax? (yes or no):
Yes
Do you support amending the state constitution to permit communities to levy by rties to levy by referendum a local sales tax option to fund specific projects? (yes or no):
No, with conditions
Should Kentucky expand or reduce its use of tax incentives in support of economic development? (expand/reduce/maintain):
Expand
Are you in favor of extending bonding authority to the state's universities? (yes/no):
Yes, with conditions
How would you improve the business climate in Kentucky?
I will eliminate the AMC and create a pool of venture capital for investment in new and existing small businesses in Kentucky as part of my economic plan to increase household incomes by creating over 560,000 new jobs. I will form a commission to determine how we can reduce the cost of living and cost of doing business by reducing the cost of government taxation, regulation, and lawsuits.
I will form a commission to review the health care industry to find a way to reduce the cost of health care and to review our workers compensation system to find a way to better serve injured workers and reduce the cost to businesses. We must reduce the money spent on lawsuits. Businesses should pay enough to serve as an incentive to promote safe work practices but not too much so that we can reduce the cost of doing business. See www.otisbullmanhensley.com.
Bruce Lunsford, Democrat
Do you favor a repeal of the Alternative Minimum Tax? (yes or no):
Yes
Do you support amending the state constitution to permit communities to levy by rties to levy by referendum a local sales tax option to fund specific projects? (yes or no):
No
Should Kentucky expand or reduce its use of tax incentives in support of economic development? (expand/reduce/maintain):
Response did not comply
with format
Are you in favor of extending bonding authority to the state's universities? (yes/no):
Yes
How would you improve the business climate in Kentucky?
As someone who started and grew a small business into a Fortune 500 company, I understand that government does not create jobs, businesses do. I've invested in a number of Kentucky companies and helped them grow. I have experience in creating jobs. The role of good government is to create an environment for job creation and helps businesses flourish.
I've proposed several ideas to help small businesses grow, create good jobs and grow our economy, including private-public partnerships and incubator programs. I've also proposed a universal health care plan so that every Kentuckian has access to affordable and quality health care. A real universal health care plan that works will provide quality care to all Kentuckians, lower the cost of health care and make Kentucky a more attractive place to live.
Lower health care costs will also make Kentucky more attractive for businesses, thus growing our economy.
Jody Richards, Democrat
Do you favor a repeal of the Alternative Minimum Tax? (yes or no):
Yes
Do you support amending the state constitution to permit communities to levy by referendum a local sales tax option to fund specific projects? (yes or no):
Response did not comply with format
Should Kentucky expand or reduce its use of tax incentives in support of economicort of economic development? (expand/reduce/maintain):
Response did not comply with format
Are you in favor of extending bonding authority to the state's universities? (yes/no):
Yes
How would you improve the business climate in Kentucky?
Government has two distinct roles in attracting good jobs and keeping the ones we already have: 1) making Kentucky an attractive place to do business, and 2) providing the resources necessary to make the Kentucky workforce an educated and skilled workforce.
In order to make Kentucky more attractive to new business, I would create a tax environment that's equitable and fair and in-line with other states in the region.
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