FRANKFORT, Ky. – Democrats in the state House have raised concerns about a proposed half-percentage point cut in Kentucky income taxes. But by the time the House spoke on the third day of the 2025 General Assembly, the bill had advanced to the Kentucky Senate with bipartisan support.
On a 90-7 vote Thursday afternoon, HB 1, which would cut Kentucky’s state income tax from 4% to 3.5%, passed the House of Representatives. It was received in the Senate later that day, with expectations that it will pass in that chamber and be sent to Gov. Andy Beshear, who has indicated he does not oppose it.
The proposed reduction was made possible by a 2022 bill that would gradually reduce the state’s income tax if certain criteria were met, based on state revenues and rainy day fund balances.
Every Republican in the House of Representatives voted in favor of the legislation on Thursday. Seven Democrats voted against: Reps. Tina Bojanowski (D-Louisville), George Brown Jr. (D-Lexington), Beverly Chester-Burton (D-Shively), Nima Kulkarni (D-Louisville), Mary Lou Marzian (D-Louisville), Louisville), Sarah Stalker (D-Louisville) and Lisa Willner (D-Louisville) ).
However, several other Democrats — there are 20 in the House, with 80 Republicans joining them in the Chamber — have moved to move the legislation forward, though they urged caution ahead of the vote.
Rep. Al Gentry (D-Louisville), chairman of the Democratic caucus, said he would vote in favor of the measure because he “is not opposed to policies that seek to reduce the overall tax burden on all Kentuckians.” While voting against the 2022 bill that lowered income taxes, Gentry said people need help and he wants the state to provide it.
But cutting income taxes for all residents by half a percentage point disproportionately helps high-income families, he noted. Rep. Rachel Roarx (D-Louisville) planned to introduce an amendment that would lower sales taxes on some services to give families some additional relief, but she said on the House floor that she would not introduce it as she expected. excluded from order.
“Right now, our budget reserve trust fund is healthy — regardless of how much you think federal funds have contributed to that, pandemic relief funds, it’s healthy. We’re in pretty good shape to do this, so we have to do it.” Gentry said. “But as we face a recessionary challenge in the coming years, I hope and pray that we will have the courage to make tough decisions without cutting back on much-needed services to those in need.”
Rep. Jason Nemes (R-Middletown) spoke at length in favor of the bill, noting that the latest proposed cut “did not happen overnight” and was phased in after other cuts. Another tax cut should help attract new businesses and bring more residents to the commonwealth, he argued, a “long game” that will help the state grow.
“Kentucky is a poor state. We’re not going to tax our way to prosperity,” said Nemes, the Republican Party whip. “We all want to support the Medicaid programs and the schools and fund all the things we all care about. But you can’t do that by overburdening people. We do it by growing.”
HB 1’s next stop is the Senate, where Republicans have a 31-7 lead over Democrats and are also expected to pass the bill.
This story will be updated.
Reporter Hannah Pinski contributed. Reach Lucas Aulbach at laulbach@courier-journal.com.
This article originally appeared in the Louisville Courier Journal: Kentucky General Assembly 2025 income tax cut bill, HB 1, advance payments
