Here in Kentucky we do many things well, but two items stand out in my mind as truly Kentuckian: Thoroughbred horses and bourbon.

These two industries help define Kentucky’s “brand.” They have been part of the fabric of our state since the 1700s and the primary things we are recognized for throughout the world.

These industries started here, grew here, and became what they are today because of Kentucky’s natural environmental advantage. The Commonwealth sits on a bed of limestone which provides calcium and phosphorous to make our Thoroughbreds’ bones strong and filters out iron from the water, essential to bourbon whiskey. 

Other states trying to imitate our horse and whiskey industries envy our natural 200-year advantage. And judging from recent action by the Kentucky General Assembly, it seems to me our signature industries are sometimes more appreciated outside our state than within it. 

We need to nurture the golden goose—not kill it.

Lexington is the “Horse Capital of the World” and the host of the 2010 Alltech FEI World Equestrian Games.   The horse industry employs 100,000 Kentuckians, provides $2.3 billion in goods and services, and offers another $4 billion in economic impact. Horses have always been a key part of Central Kentucky’s identity and economy—but this could be changing.

Horse farms are starting to move out of Kentucky as other states provide better opportunities. We have seen reduced racing dates, a double-digit drop in wagering, and declining Thoroughbred sales. Why are we beginning to lose the horse industry?

There are a number of forces at work, but the lack of gaming options in our state is crippling Kentucky’s horse industry. Race tracks that allow casino gaming in other states have been able to provide bigger purses, giving owners and trainers bigger incentives to race in these states. 

The societal costs of gaming must be recognized and dealt with, but with Kentucky’s proximity to other states that allow casino gaming, we are already experiencing the negatives of gaming while reaping none of the benefits. Why should Kentucky gamblers contribute Kentucky dollars to Indiana, Illinois, West Virginia, and Missouri school systems?

Supplying another 3,200 local jobs, the Commonwealth’s signature distillers provide over $3 billion a year in economic value to Kentucky. Our distillers also bring in 500,000 tourists annually to visit the Bourbon Trail which winds its way through some of the most beautiful parts of our state. But sadly, even though bourbon is already the single most highly taxed spirit nationwide, the Kentucky General Assembly continues to tax them even more. Remarkably, the state government recently raised the tax on bourbon, making Kentucky’s tax code the second least friendly to this native product. 

The very place that should treat bourbon the best is treating it the worst.

Some of us in Congress are trying to give equitable advantages to Kentucky’s signature industries, including ensuring that the tax code treats bourbon fairly in relation to other businesses. Failing to do this would force even higher taxes on bourbon, leading to decreased sales and lost Kentucky jobs.

In short, we are overtaxing our bourbon producers, not allowing them to compete fairly, and we are hurting the horse industry by allowing other states to be more competitive with better racing incentives.

These are Kentucky’s signature industries, and our state deserves the chance to compete fairly. If we don’t protect our own, Pennsylvania’s horse racing purses and Tennessee’s whiskeys are going to start chipping away at our two trademark industries.

Bourbon and horses are uniquely Kentucky. They began here, they grew here, let’s keep them here and help them prosper.