Kentucky lawmakers took another step Wednesday toward achieving a deeper cut in the state’s individual income tax rate as the measure sailed through a Senate committee.
The bill aims to lower the tax rate by another half-percentage point to 4%, effective Jan. 1, 2024. It follows up on last year’s work to reduce the individual income tax rate.
The Senate Appropriations and Revenue Committee advanced the House-passed measure.
It continues the momentum for Republicans hoping to phase out individual income taxes in Kentucky. They say it will promote further economic gains and population growth.
“The safety valves are built in in such a way that I’m confident that we will be able to sustain the growth of the economy in Kentucky and meet the needs of our citizens as it relates to state government,” Senate President Pro Tem David Givens said.
The bill’s detractors say cutting the individual income tax will deprive the state of funds needed to bolster spending on education, public safety and other priorities.
The bill follows up on last year’s tax overhaul, which set the stage for a reduction of the state’s individual income tax rate from 5% to 4.5% at the start of this year. The new measure finalizes that cut.
Republished with permission from The Associated Press.