Corbin businesswoman named to state tax reform commission

Marion Forcht

A Corbin businesswoman is one of 23 Kentuckians, representing a broad spectrum of public and private sector interests, who will serve on a Blue Ribbon Commission tasked with reforming the state’s tax code.

Marion Forcht said she was honored when asked by Kentucky Gov. Steve Beshear to serve on the Commission on Tax Reform. Though there are 23 total members, she is one of just 16 voting members. The remainder serve in an advisory or "ex officio" capacity.

"It is our intent to modernize and update the tax laws," Forcht said. "There are just too many and they are too confusing … Even if you are wanting to pay them the way they should be paid, it is just too confusing. It shouldn’t be that way."

Forcht noted that while Kentucky is "not at the bottom or the top" when it comes to its tax structure’s attractiveness to businesses, there are many issues with the tax code that could drive away potential business investment in the state. She points to Tennessee, which has no corporate income tax, as an example of a state that is more appealing to small and large business owners.

Members of the commission have been provided with a list of every tax collected by the state of Kentucky. Also, members have been given a similar list of all the taxes states that border Kentucky collect.

Forcht said the Commission would look at the state’s tax structure as it relates to both businesses and individuals. Though she comes in with few preconceived notions about current tax law, Forcht said simplification of the system is paramount.

"Very few people anymore can fill out their own tax return," Forcht said. "I think we need to do away with some taxes … make things a little easier."

She said the corporate income tax is something that deserves a serious look. Also, property taxes on vehicles is another sticking point.

"Right now in Kentucky, people basically have to rebuy their car every year and pay taxes on it," Forcht said, pointing out that the tax has encouraged people to license their vehicles in other states.

In general, she said she favors "ad valorum" or pay-as-you-go taxes over income taxes – things like sales tax, cell phone usage tax, cable and satellite television, etc.

"Taxes, by the nature of the beast, is not a fun thing," Forcht said. "We all have something else we’d rather do with that money, but the state needs money to run and it has to come from somewhere. We want to come up with the most palatable way to pay it. Hopefully, we will come up with something that will make some sense."

In the past, Forcht said the current tax has survived, with some modifications, because economic times were relatively robust. Now, there is more of a premium on government efficiency.

"Our economy is not growing like it once was and probably won’t … We need to learn to live with what we can legitimately and fairly get out of people," Forcht said.

In 2011, the National Tax Foundation ranked Kentucky 19th best in the nation both in its business climate and in the growth rate of new jobs. Another recent report ranked Kentucky eighth in the nation for taxes and regulations, and 12th for job growth.
The five guiding principals of the Commission will be: fairness, competitiveness, simplicity and compliance, elasticity and adequacy.

Forcht said the Commission had an information meeting last Friday and will begin regular meetings it the near future. It will hold six public meetings and forums over the summer to seek input from citizens. The group should tentatively have recommendations by November. Beshear has vowed not to propose any tax code changes until after this year’s General Election.

The Commission’s recommendations are advisory only and may be accepted wholly or in part, or not at all.
Forcht said she believes the formation of the group is not politically motivated and that’s it work will be given serious consideration by the governor when changes are proposed.

Forcht is President and CEO of Forcht Insurance Agency. She also serves on the Board of Directors for the Kentucky Center for the Performing Arts, Kentucky Historical Society and the Sanders-Brown Center on Aging. She also serves on the state’s History Property Advisory Commission. She is the wife of Forcht Group of Kentucky Founder and CEO Terry Forcht.