Limiting Expensive Income Tax Break for Higher-Income Retirees Is Important Part of Tax Reform

A limit on the state’s large retirement income tax break for higher-income people is an important component of tax reform, and Governor Beshear’s plan includes such a limit. Reforming the existing tax break will improve the fairness of Kentucky’s tax system, generate needed revenue for public services and reduce the revenue losses that would come with an aging population in future years.

High-Income Retiree Tax Break