FRANKFORT, Ky. (LEX 18) — Currently, as things stand, Kentucky will not lower its income tax rate next year. The state did not meet the next necessary trigger to continue lowering it.
The state legislature created the law to ultimately get rid of income tax in Kentucky. But in order to avoid a possible messy economic situation, lawmakers set up triggers that must be hit in order to slowly reduce the
tax rate.
So far, two reductions have taken place.
But for this year, the state budget director reports that despite hitting a massive budget surplus, Kentucky did not meet the necessary trigger.
Governor Andy Beshear said it's up to the General Assembly to revisit what they want to do now. And while he understands this is not what some people may want to hear, he supports lawmakers taking a responsible, measured approach to lowering the income tax.
"Listen, we want to reduce everyone's tax burden. I was able to reduce income tax, property tax rates, and freeze the gas tax when gas was so expensive. But we have to make sure that we're also responsible," says Gov. Beshear.
Gov. Beshear says Kentucky has a lot of things it needs to pay for, from public education to Medicaid.
So, going slow on reducing the income tax rate is not a bad thing.
