Despite a top lawmaker's claim that Kentucky's alternative minimum calculation (AMC) tax, also known as a gross receipts tax, is “un-American," it appears the business levy will remain in place at least until the state's next budget is considered in 2008.

Pressure applied by the state's small business lobby resulted in lawmakers adjusting the policy last June. The revised plan immediately exempted businesses with gross receipts of less than $3 million.

Major tax collection drive expected

Dr. Omar Davies, Minister of Finance and Planning, was jovial as he opened the 2007/08 Budget Debate in Parliament. Beside him is Prime Minister Portia Simpson Miller, and in the background State minister of Finance, Fitz Jackson, both of whom are tickled by Davies' antics. - Rudolph Brown/Chief Photographer

Minister of Finance Dr. Omar Davies stated on Thursday during the opening of the 2007/08 Budget Debate that to achieve a 14 per cent improvement in revenue collections "will require a sustained, aggressive compliance programme."

The tax revenue projection is $215.9 billion.

"I have instructed the financial secretary to work closely with the director general of tax administration in order to meet our target," said Davies.

To achieve the projected increase in tax revenue for the current fiscal year, it is the Government's intention to enforce compliance by conducting forensic and large case audits, with an emphasis on arrears and improvement in the operational efficiency of customs.

KiwiSaver's shock take

Potential Kiwisavers expecting to chip 4% or 8% of their salary into KiwiSaver will be surprised to find their take-home pay reduced by about 5%-10%, investment experts say.

Mike Woodbury from Chapman Tripp said there was a widespread lack of understanding that the 4% and 8% levels were calculated from before-tax salary, but the contribution was then made from after-tax salary.

That would be a shock to many when it came to the decision whether to opt in or out of KiwiSaver, Woodbury said.

Someone earning $50,000, for example, would be expected to contribute 4% or 8% of their gross salary to KiwiSaver, equating to $2000 or $4000, but that sum is deducted from their after-tax pay, reducing their take-home pay from $38,630 to $36,630 or $34,630, reductions of 5.1% and 10.2%.

This Isn't the Way Taxes Should Be

A citizen is obligated to pay for her nation's reasonable operating costs. A nation is obligated to collect the revenue in the fairest and least painful way.
Americans have met their side of the bargain.
America has miserably failed.
As you do your taxes, remind yourself that this is not the way it ought to be. Ninety-four years of federal income taxes have numbed us to the outrageous reality of the filing process, the trivial tyranny of forms, schedules, instructions and exemptions.
Today, no matter what your politics, wake up and meet your inner Steve Forbes (the best-known advocate of tax simplification).
I'm not anti-tax. I'm anti-confusion, and Congress has made tax laws so confusing that even the Internal Revenue Service doesn't understand them.

County taxpayers can expect real estate tax bills to add to the ...

On Monday citizens will be able to weigh in on their thoughts on Bedford County's upcoming budget. The public hearing has been scheduled for April 16 at the Bedford Science and Technology Street on Edmund Street in Bedford.Citizens should take this opportunity to voice their opinions to the Bedford County Board of Supervisors - this is an important budget year. Following the public hearing the supervisors will have a final budget discussion April 17.Because of the skyrocketing real estate reassessments this past year, supervisors must balance the growing financial needs of the county with the knowledge that they can't afford to tax county residents out of their homes.That makes this year's budget so crucial.Supervisors have proposed cutting the tax rate from its current 65 cents per $100 of assessed value to 52 cents per $100.