so kentucky lawmakers just passed a bill to cut the state income tax again, from 4% to 3.5% starting in 2026. the governor supports it, so it’s pretty much a done deal. republicans say this will boost economic growth and help people keep more of their money. some democrats are on board too, but others are worried about what happens if the income tax keeps dropping. at some point, they’ll have to raise other taxes to make up for it, right?
didn’t they already cut taxes a few times? how low can this go?
Roan said:
didn’t they already cut taxes a few times? how low can this go?
yeah, since 2022 they’ve been lowering it bit by bit, half a percent at a time. some republicans wanna cut it to zero eventually.
so this saves taxpayers $718 million a year. where’s that money gonna come from to keep the budget balanced?
Denver said:
so this saves taxpayers $718 million a year. where’s that money gonna come from to keep the budget balanced?
house budget chairman said there’s still plenty of room to keep the budget balanced, even with the cuts. but they’ve already expanded sales taxes to more services.
is this just a kentucky thing or are other states doing it too?
Westley said:
is this just a kentucky thing or are other states doing it too?
nah, this is part of a bigger trend. trump is pushing for more tax cuts, and a lot of states have been cutting income, sales, or property taxes lately.
is there a plan for the next tax cut after this one?
Shay said:
is there a plan for the next tax cut after this one?
some gop senators are already talking about making the next cut bigger, maybe three-quarters of a percent or even a full 1% in 2026.
what’s the argument against these tax cuts? i mean, who doesn’t like paying less tax?
Jesse said:
what’s the argument against these tax cuts? i mean, who doesn’t like paying less tax?
some democrats are worried that cutting income tax too much means they’ll have to raise other taxes later. one senator said a balanced tax system is better than just slashing one tax type.
@Kai
makes sense. you still need taxes to run a government, so if they drop income tax too low, something else has to go up.