Republican lawmakers in Kentucky resumed their push Tuesday to continue cutting the state’s individual income tax rate, as they convened for a 30-day Session that will play out against the backdrop of the state’s premiere political contest — the race for Governor.
Legislation aimed at lowering the income tax rate by another half-percentage point to 4%, effective Jan. 1, 2024, was introduced on the opening day of this year’s Legislative Session.
House Speaker David Osborne predicted the measure will clear the House this week. The Senate isn’t expected to take up the bill until February, when lawmakers will reconvene after an extended break that begins after this week, he said. Republicans have supermajorities in both chambers.
The tax-cutting measure is a follow-up to a law enacted last year that triggered a reduction of the individual income tax rate from 5% to 4.5% at the start of this year. The ultimate goal for GOP lawmakers is to phase out individual income taxes in Kentucky.
“We happen to believe that it’s good policy to allow taxpayers to keep more of their hard-earned money,” Osborne told reporters.
The bill’s opponents warned that revenue lost from the rate cut would squander the state’s massive revenue surpluses and that the reduction would overwhelmingly favor wealthy taxpayers.
Republished with permission of The Associated Press.