In January, Kentuckians will start paying less in income taxes after the Republican-led Legislature passed a bill reducing rates from 5% to 4.5%. GOP leaders say they plan to cut the tax even further during next year’s lawmaking session, with hopes to totally eliminate the tax in the future.
Lawmakers voted to lower the income tax after the state brought in more tax revenue than expected in recent years, creating historic budget surpluses. But critics say the measure will blow a hole in the state’s revenue-generating mechanism and lead to higher sales taxes on essential items.
