FRANKFORT, Ky. — Democrats in the state House voiced their concerns about a proposed cut to Kentucky’s income tax by half a percentage point. But by the time the chamber gaveled out on the third day of the 2025 General Assembly, the bill had advanced to the Kentucky Senate with bipartisan support.
In a 90-7 vote Thursday afternoon, HB 1, which would lower Kentucky’s state income tax from 4% to 3.5%, advanced through the House. 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 cut was made possible by a 2022 bill that would gradually cut the state’s income tax if certain triggers were met, based on the state’s revenue and rainy day fund balance.
Every Republican in the House on Thursday voted to advance the legislation. Seven Democrats voted against it: Reps. Tina Bojanowski (D-Louisville), George Brown Jr. (D-Lexington), Beverly Chester-Burton (D-Shively), Nima Kulkarni (D-Louisville), Mary Lou Marzian (D-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 — moved to allow the legislation to advance, though they urged caution ahead of the vote.
Rep. Al Gentry (D-Louisville), the Democrats’ caucus chair, said he’d vote in favor of the measure because he’s “not against policies that try to lower the overall tax burden for all Kentuckians.” While he voted against the 2022 bill that allowed the income tax decrease, Gentry said people need help and he wants the state to provide it.
But lowering the income tax for all residents by half a percentage point disproportionately helps high-income families, he noted. Rep. Rachel Roarx (D-Louisville) had planned to put forward an amendment that would cut sales taxes on some services to give some additional relief to families, but she said on the House floor she would not introduce it as she expected it to be ruled out of order.
“Right now our budget reserve trust fund is healthy — regardless whether what degree you feel federal funds have contributed to that, pandemic relief funds, it is healthy. We’re in pretty good shape to do this, so we should do it,” Gentry said. “However … if we do run into some recessionary challenges in the years ahead, I hope and I pray that we have the courage to make tough decisions without cutting much-needed services to people in need.”
Rep. Jason Nemes (R-Middletown) spoke at length in favor of the bill, noting the latest proposed cut “didn’t get here overnight” and was phased in after other cuts. Another dip in taxes should help draw new businesses and bring more residents to the commonwealth, he argued, a “long play” that will help the state grow.
“Kentucky is a poor state. We are not going to tax our way to prosperity,” Nemes, the House GOP’s whip, said. “We all want to support the Medicaid programs and the schools and fund all the things that we all care about. But you can’t do it by overtaxing folks. We do it by growth.”
HB 1’s next stop is the Senate, where Republicans hold a 31-7 advantage over Democrats and are also expected to approve the bill.
This story will be updated.
Reporter Hannah Pinski contributed. Reach Lucas Aulbach at laulbach@courier-journal.com.
This article originally appeared on Louisville Courier Journal: Kentucky General Assembly 2025 bill to cut income tax, HB 1, advances