To the extent that federal programs which benefit Kentuckians are cut, much of the burden for paying for these programs will be returned to Kentuckians. At the same time, Kentucky farmers receive fewer benefits from federal farm program payments per farm than is true for many other agricultural states, and thus have less to lose if federal farm program payments are reduced. Many Kentucky farmers would likely benefit more than city dwellers from reform proposals that encourage investment and reduce capital gains rates that apply when farms are sold. The coming political debate leading to the 1996 presidential election promises to be intriguing as candidates outline in detail their individual proposals for federal tax reform and deficit reduction. Federal income tax reform and related deficit-reduction issues will likely be the major issue of the upcoming presidential campaign.
Voters seem interested in candidates who can offer innovative ideas for tax reform.
As a result, each candidate will likely have a proposal that contains a different set of features selected from among the alternatives outlined here. Some of these proposals will likely represent radical changes to existing tax law, while others will consist of more modest changes to the current system. President Clinton will likely develop a tax reform package of his own to place before the voters. Voters will then have the opportunity to elect a president in part based on the specific tax reform proposal advocated. This paper was written by Dr. David Debertin and Dr. Stephan Goetz .