FRANKFORT, Ky. (AP) — House Republicans have voted to fundamentally revamp Kentucky's tax code. They passed a bill Friday aimed at phasing out the individual income tax and extending the state sales tax to more services.
The measure would shift tax collections increasingly toward consumption and away from personal income. The proposal advances to the Senate. The plan's supporters say it will encourage job growth and population gains by enabling people to keep more of the money they earn.
Democrats opposing the measure say it would disproportionally benefit wealthier Kentuckians and could deprive the state of revenues to properly finance schools and other priorities.