Legislators Looking At Raising State Taxes in Kentucky

The Kentucky Legislature passed a large tax overhaul recently and are now asking for the governor’s signature. The catch? It looks like the point of the overhaul was aimed at raising state taxes in Kentucky.

The 300+ page bill which will arrive at the Governor’s desk restructures the current state income tax while imposing sales taxes on 17 additional service. These include  landscaping, janitorial work, golf courses and pet grooming.

The biggest news, however, is that the bill is raising state taxes in Kentucky mostly at the expense of low-income residents.

“…it cuts taxes for the rich on the backs of the poor.” – State Rep Angie Hatton

Under the bill, taxes will increase slightly for most income brackets. However, the top two brackets will see a tax decrease.

“This plan makes Kentucky more economically competitive while also maintaining our ability to fund vital investments in education” – Kentucky House Majority Leader Jonathan Shell

For his part, Governor Bevin was lukewarm on the proposal, saying in a statement that it “may not be fiscally responsible.” However, the bill does have its supporters.

“In essence, this bill is broadening the tax base and lowering rates, which is what sound tax policy looks like,” said Morgan Scarboro, a policy analyst at the Tax Foundation.

In any case, new Kentucky taxes may be on the way. Beyond income taxes, the bill also increases sales tax and tobacco tax.

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