HB 775 Moves Goalposts Again to Give Legislature Permission for More Tax Cuts
House Bill (HB) 775 in the Kentucky General Assembly would move the goalposts yet again on the state's income tax...
Tax and Budget
Another Income Tax Cut Will Dig the Hole Deeper
Kentucky lawmakers are expected to vote early in the legislative session on another half-point cut to the individual income tax rate, a drop from 4% to 3.5%. This cut is...
Kentucky Voters Buried Private School Vouchers. One More Idea Must Die to Truly Reinvest in Our Public Schools
Despite the best efforts of anti-public school activists and the deep pockets of out-of-state billionaires, Kentucky voters resoundingly defeated the proposed constitutional amendment allowing public dollars to be diverted to...
Legislature Moved Goalposts to Meet Conditions for Tax Cuts Whose Bill Is Now Coming Due
The conditions have been met for the General Assembly to potentially cut the individual income tax rate from 4% to 3.5% beginning Jan. 1, 2026, the State Budget Director announced...
The Income Tax Was Never Going to Be Eliminated. But Admitting So Matters.
An important shift may have happened last month when the Kentucky House Speaker said the General Assembly will not be eliminating the state's individual income tax after all, as reported...
Senate Budget Includes Much More Infrastructure Spending, Remains Austere When It Comes to Other Needs
The Senate has proposed a budget that spends significant dollars out of the Budget Reserve Trust Fund (BRTF), primarily on infrastructure projects, much more than the House proposed. However, the...
Local Sales Tax Amendment Could Lead to Wider Inequality Without Better Funding Local Services
Under Kentucky’s constitution, there are limits on the types of taxes the General Assembly may authorize local governments to levy, and local sales taxes are not allowed. [efn_note]As currently interpreted,...
More College Students Can’t Meet Their Basic Needs in the COVID-19 Pandemic, Requiring Federal and State Action
Too many college students in Kentucky returning to school in-person and online during the pandemic face challenges getting adequate food and housing. Meeting such basic needs was already a struggle...
Federal Relief Shored Up Kentucky’s Budget, but New Projections Raise Big Concerns About Remainder of Year
The economic downturn caused by the COVID-19 pandemic has harmed Kentucky’s revenues and budget, but in the last fiscal year the impact was softened by substantial federal relief to families,...
Why the Senate COVID Proposal Fails to Meet Kentucky’s Economic Needs
The new Senate aid proposal, known as the Health, Economic Assistance, Liability and Schools (HEALS) Act, falls far short of the breadth and depth of aid needed to fight the...