The past two years have set the bar high for our regional economy. With record growth and economic investment in 2021 and 2022, we knew 2023 had a lot to live up to. This week, as a result of GLI\u2019s tireless advocacy over the last few years, the General Assembly took action to make our region more competitive by lowering Kentucky\u2019s personal income tax by half a percent and setting us up for continued success in the years ahead.<\/p>\n
Recently, House Bill 1 passed the Kentucky Senate and then was signed into law by Governor Beshear. This exciting step for our economy comes after the General Assembly passed House Bill 8 last year, which will gradually reduce and eventually eliminate the state\u2019s personal income tax. Legislators were thoughtful to ensure this reduction does not harm our state\u2019s fiscal health by putting revenue thresholds in place before a reduction can occur.<\/p>\n
This was a long-time priority for GLI, and only one part of the comprehensive tax reform we continue to advocate for. As taxpayers this will mean more money in our paychecks each year. But it\u2019s just as consequential for us as business leaders and economic developers. Having a lower, and eventually no, income tax makes our region more competitive with our surrounding states and cities around the country. It will make Greater Louisville and all of Kentucky more attractive to talent and more attractive to companies.<\/p>\n
This, coupled with local tax reform, will set our economy up for continued growth in the decades ahead by making us less reliant on production-based taxes and moving towards a consumption model. GLI has been at the tip of the spear, leading advocacy around local tax reform for many years. We are hopeful our persistence will pay off during the 2024 session and the decision will then go to voters. We have partnered with local groups to not only get the legislation across the finish line but also to support a public awareness campaign to bring it to fruition.<\/p>\n