Kentucky's Tax Cut Roadblock | Lexington News

Kentucky’s push to eliminate its income tax is hitting major snags—missing revenue targets for the third time in a row, forcing lawmakers to rethink their aggressive timeline. Originally set to slash the rate by half a percent annually, the state now falls $1 billion short of the needed funds to drop from 3.5% to 3%, and also failed to meet reserve benchmarks. While Republicans tout the cuts as business magnets and financial relief, critics warn of deepening budget holes in Medicaid and schools. Echoing Kansas’ costly mistakes, some lawmakers are urging caution over speed, even as others push ahead. The path to zero income tax may be longer than expected—but Kentucky’s still aiming, just more carefully now. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/7b2e58af3b70c80f