Why Kentucky might do well to axe income tax

Rep. Bill Farmer (R-Lexington) announced his plan to repeal the state income tax and replace it by eliminating sales tax exclusions and expanding the sales tax to include services. Farmer spoke today as a guest on the Leland Conway Show.

A new 50-state report suggests one way Kentucky's economy could really benefit: by attracting more entrepreneurs. The Information Technology & Innovation Foundation found Kentucky is the 4th fastest-growing state in the category of entrepreneurial activity. Freeing income from taxation could incentivize more activity in an area which Kentucky shows some life.

The study, which purports to rank states according to their ability to transition to a technology-based economy. Overall, Kentucky ranks 45th in 2008, down from 39th in 1999.