How the Legislature delivered for Kentucky businesses: Opinion

Coming out of a two-year pandemic, facing extreme workforce shortages and working toward economic recovery, the Kentucky Chamber knew we had to have a bold plan heading into the 2022 General Assembly. This included driving down the income tax rate, addressing our low workforce participation, investing in infrastructure, supporting our signature industries, and protecting employers’ rights. Now that we have closed the door on a busy, action-packed legislative session, it is clear the General Assembly prioritized pro-growth policies and delivered for Kentucky businesses.

Topping the list of successes was the passage of House Bill 8, a tax reform package that includes a multi-year plan to eliminate Kentucky’s individual income tax. Last year, the Chamber partnered with the Tax Foundation to publish a report that described pragmatic, responsible options for improving Kentucky’s tax code and making us more competitive. Over the past year I traveled the state and listened to employers talk about the need to reduce income taxes to more effectively compete for employees and economic opportunity. We watched as Indiana, Ohio, North Carolina and other competitor states dropped their income tax rates. We studied Census data that showed low- and no-income-tax states outgrew us on population, GDP growth, job growth and workforce participation. The General Assembly met the moment and put us on a path to truly compete and lower taxes for our citizens.