Kentucky’s Turn to the Tax Cut – WSJ

The federal budget season continues to pay off for taxpayers, and the sharp reversal in Kentucky shows the strength of the trend. The same legislature that campaigned to keep income taxes unchanged four years ago beat the governor to cut interest rates this week.

The Kentucky House and Senate on Wednesday voted to override Democratic Gov. Andy Beshear’s veto and implement tax reform passed last month. The plan cuts the state’s flat income tax rate to 4.5% from 5% in 2023, creating a catalyst for more cuts across the board. Automatic rate cuts of 0.5 points come into effect every year when government reserves are high and revenue exceeds expenditure.