House passes bill that would lower Kentucky income tax again

WATCH | House passes bill that would lower Kentucky income tax again
Published: Jan. 5, 2023 at 11:44 AM EST
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FRANKFORT, Ky. (WKYT) - Another reduction of Kentucky’s income tax is moving through the General Assembly.

Legislation passed during the last 2022 session signaled a half-percent drop to 4.5%, which took effect on January 1, 2023. Now, lawmakers have advanced House Bill 1, a measure to drop it further.

The Budget Committee voted 16-4 Thursday morning to lower the income tax to 4%, effective January 2024. Thursday afternoon, the full House sent HB 1 to the Senate in a 79 to 19 vote.

This comes as Republicans say the state is doing well and will continue to do so under their leadership.

“The truth of the matter is, our state is growing economically. That is part of the policies we put into place when we started in 2017. Now coming to fruition,” said Rep. Brandon Reed, R-Owensboro.

However, Democrats say Kentucky’s good financial shape could change, and this bill only helps the wealthy and will hurt the poor.

“Hurts lower-income Kentuckians. Helps the wealthier, higher-income Kentuckians,” said Rep. Ruth Ann Palumbo, D-Lexington.

Friday is the last day of the first part of this year’s session. After Friday, lawmakers will return in February for the final 26 days of the session.