Kentucky’s GOP-dominated legislature has made it clear they want to see the state’s income tax lowered, if not eliminated. But rather than do away with the tax, legislators opted for a more cautious approach – only dropping the rate if certain fiscal triggers are met.
Gov. Andy Beshear said Thursday, for now, the data don’t permit further cuts.
"The numbers of where our economy is right now do not meet the thresholds that the legislators themselves set in statute," the Democrat said.
That’s the official word from State Budget Director John Hicks.
In a statement, Senate Budget Chair Chris McDaniel, a Republican, said the income tax legislation is “working precisely as intended,” adding that reductions in 2023 and 2024 will have saved taxpayers about $1.8 billion.
Republican gubernatorial candidate Daniel Cameron has said he wants to see the income tax scrapped as soon as possible to increase the state’s competitiveness. Beshear has warned a complete elimination would either require a "massive sales tax increase" or the "gutting of K-12 education."
