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...
Budget & Tax
Chaos, Confusion and Concern Over White House Funding Freeze
On January 29th, the White House announced that they were rescinding the proposed funding freeze. The Trump administration’s attempted funding freeze has already resulted in chaos, confusion and concern for...
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...
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 Impact of Diverting Public Money to Private School Vouchers in Kentucky
This November, Kentuckians will vote on an amendment to the state constitution that would permit the General Assembly to spend public money on private schools. [efn_note]House Bill 2, 2024 Regular...
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...
Budget Agreement Maintains Modest Spending for Education and Other Needs Despite Funds Available to Do More
The final budget agreement spends significant dollars out of the Budget Reserve Trust Fund (BRTF) primarily on infrastructure and very specific local projects. However, it remains largely austere when it...
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...
House Passes Austere Budget That Adds to Already Overfunded Reserves and Aims for More Tax Cuts
Kentucky has a historic opportunity to invest in critical community needs, but the House passed a modest budget – lacking adequate funds for areas like education, child care, housing and...
Kentucky Plummets in State Ranking of Tax Fairness
Because of recent legislative changes, Kentucky’s tax system is rapidly becoming much more inequitable, according to a new report by the Institute on Taxation and Economic Policy (ITEP). Kentucky has...