Bill to reduce Kentucky's income tax picking up support in Frankfort

LOUISVILLE, Ky. (WDRB) -- The push to make Kentucky's income tax even lower is picking up steam in Frankfort.

House Bill 1 passed the entire House floor Thursday afternoon, after passing through a committee in the morning.

The bill would cut the current tax rate to 4% in 2024, if revenue goals are met. The income tax rate just went down to 4.5% on January 1, as more sales tax exemptions were lifted.

Critics worry the loss of state revenue would impact funding for programs and disproportionately hurt lower income families. However, Republicans point to the positive track of the state's economy, and incoming investments and say it's time to put more money in taxpayer pockets.

Democrats like Lexington's Rep. Ruth Ann Palumbo disagree. "Future legislators will have to raise taxes and we are not being fiscally responsible when we are looking to the future and hurting lower income Kentuckians," she said.

But Republicans, who are a supermajority in both the House and Senate, are pushing back on critics.

"I heard this in '18, and I continue to hear it. 'You're gonna have to raise taxes. You're gonna have to raise taxes. Everything's going to hell in a handbasket. You're gonna have to raise taxes.' And I admire you (Palumbo) and respect you, but that narrative is just so bad for the public," said Elkton Republican Rep. Jason Petrie.

Now that the House has passed HB1, it heads over for a reading in the Senate. The bill will be taken up by the Senate in February.