Lexington’s vice mayor is asking his colleagues on the urban county council to consider a tax increase to help deal with government financial challenges intensified with the current coronavirus pandemic. However, Steve Kay is not calling for action on any proposal right now.
Vice Mayor Steve Kay began his presentation to the budget committee last week by stressing he’s not seeking a vote on a tax increase at this point. But the veteran councilman did lay out an argument for a quarter of a percent hike in the city’s payroll tax and net profits levy. Kay said the city saw rising costs and a projected deficit before COVID-19.
“I think the short story is LFUCG is not exempt from the most basic law of economics, there is no free lunch. Delivering services cost money,” said Kay.
Councilman Richard Moloney said Kay’s suggestion is one option. Moloney says bigger government cuts and a stronger emphasis on job creation need more attention first. “When you look at New York, you look at all these major cities when people have to be on a subway for two hours to get to work, two hours to get back with thousands of people and we have a city here that’s got eleven hours to the majority of the population of the United States, I think we’ve got a lot of talent that we have yet to tap into,” noted Moloney.
The vice mayor is suggesting council members solicit reaction from constituents about a tax increase.
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