Proponents of expanded gambling emphasize how the added revenues estimated at $500 million annually would result in Frankfort having more money to spend.

Gubernatorial candidate Steve Beshear says if a gaming measure passes, he wants the money spent on the education of Kentuckys children, the creation of jobs for Kentuckians, the provision of better health care for our people and to build and pave Kentuckys roads.

At the same time, Beshear implies that by placing casinos also known as racinos at race tracks, the horse industry would get a reprieve from out-of-state competition.

Beshear should at least consider a variation on Indianas reforms that have dovetailed with casino gambling. Hoosier lawmakers will use much of the additional revenue from expanded gambling to cut or stem future property-tax increases.

With the added gambling revenue, Beshear could eliminate some combination of the following:

Taxes on telecommunications

Taxes on wine wholesalers

Corporation license taxes

Racetrack license taxes

Natural gas severance taxes

Inheritance taxes

Motor vehicle taxes

An extra $500 million could also help eliminate corporate income taxes and the dreaded Alternative Minimum Calculation, which penalizes Kentucky businesses not making a profit.

And if Beshear is truly concerned about the so-called decline of the horse industry, he should consider calling for an end to punitive taxes on pari-mutuel betting.

His focus on more spending begs a question every reporter should ask Beshear: If expanded gambling comes to Kentucky, what specific Kentucky taxes do you plan on completely eliminating with the proceeds?

By focusing his energies solely on new spending, Beshear lends his tacit endorsement to the notion that government knows how to spend our money better than we do. If he believes otherwise, he should start pointing out what taxes can go away if expanded gambling arrives.

Sources:

Property tax reform in Indiana by Karl F. Berron, The Louisville Courier-Journal, June 12, 2007.

General Fund Receipts for May total $798.2 million, Office of the State Budget Director, June 8, 2007.

Expanded Gaming, Beshear/Mongiardo Campaign, 2007.