Tax Cut Proposal Sponsored by State Rep. Reed Headed To Governor’s Desk

A tax cut proposal is heading to Governor Beshear’s desk. On Wednesday evening, House Bill 1, sponsored by Representative Brandon Reed of Hodgenville, was approved by the Senate by a 30-5 vote. The state’s individual income tax was lowered to 4.5% in January 2023 and this bill would lower it to 4% in January 2024. House Bill 1 is the next step in the Kentucky General Assembly’s efforts to eliminate the individual income tax entirely. During the 2022 General Assembly, House Bill 8 was passed which laid out steps to get rid of the individual income tax entirely but had milestones to be met before decreasing the tax in a half of a percentage increments.