FRANKFORT, Ky. (WKYT) – Kentucky lawmakers are advancing a bill that could result in more take-home money for most workers.
The individual income tax rate could be lowered to 3.5% if a bill passes the General Assembly this year. The income tax rate used to be 5%.
House Bill 1 would further reduce the state income tax by a half percent next January since economic factors were recently met.
“To make sure that we are methodically proceeding than doing so abruptly,” said Jason Petrie, R-Elkton.
The end goal is to eventually do away with the entire individual state income tax. However, lawmakers say they’re doing it a little at a time, and their formula does not call for increases in sales or other taxes.
“Right now, none of our modeling is contingent or utilizes an increase in the sales tax rate. Not in the way we are projecting things out. …