KY Income Tax Rate Down to 4.5% for 2023
- Thread starter vhcat70
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Even those of us who don't have a million in taxable income will appreciate the reduction.
My guess is that the expanded sales tax has made this possible?
Actually the two go hand in hand. Plan is to continue reducing the income tax by half a point as long that revenue is replaced by sales tax revenue.
At least that’s the way I understand it.
I’m already $16 down per month due to sales tax on my daughter’s cheer tuition. Not sure it’s not going help much on my end.
As reported on local news stations, should help wealthier taxpayers the most. Also, service based businesses will have to start filing monthly sales tax forms. Elimination of filing of KY income tax returns will be nice.
Of course. They pay the biggest chunk. They also pay the most sales tax & property tax.
Sounds right unless wealthy folks invest excess earnings in stocks, etc instead of spending on goods or services. I’m happy not to have to file KY income tax return at some point in future.
I lived in Texas for 6 years and I was happy to pay the higher sales tax (8%) and not have an income tax. I would love to see KY move in a similar direction. It is good for business and almost everyone involved.
This is not good for small businesses that have revenues under 500K. Increase the cost of goods and services by 6% means reduced demand for those goods and services which means these small businesses might not survive the coming recession.
Also I am trying to work out the math where income tax being reduced by half a percent results in a 5K savings.
Also I am trying to work out the math where income tax being reduced by half a percent results in a 5K savings.
Wealthy still spend more than anyone else. Also, KY taxes divs & cap gains at income tax rates, not cap gain rates.
Moving from income to other forms of taxation catches the income tax under-reporters. They can't dodge sales taxes & the like.
Veterinarians are now supposed to charge sales tax unless they are seeing large animals. Tax everyone or no one. Sorry farmers, pay your taxes. Sorry rich horse farm, pay your taxes.
Think about the income from drug sales.
Nice to see for you guys. I'm getting tired of taxation, really been eye opening when I compare states. I know that we need *some* taxation for services.. but so much of this is bloat and for things I don't care for.
Just paid my QUARTERLY property tax bill, not including school tax, for a nice-but-nothing-great duplex... $1,200.
Just paid my QUARTERLY property tax bill, not including school tax, for a nice-but-nothing-great duplex... $1,200.
Yep. Worst schools in the country and they keep raising taxes for the schools. Just once they should have to get better to get more money.
Sooo, we “save” from this income tax reduction. But, then aren’t we going to pay more out with more taxes on services we use with all the new services being taxed? The income tax went down .5%, so picking a maybe avg salary of 75K, a person saves $375 for the year. Guessing same person will pay more than that out from increase on taxes for new services.
Income Taxes are going down but a bunch of services that were not taxed will now be subject to the 6% sales tax. The extra sales tax revenue is supposed to cover the income tax cut. I personally like the trade off. I wish that KY would legalize casino and sports gambling to further reduce income/business taxes and shore up state retirement funds.
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I'm actually curious.. what do you think makes Kentucky schools so bad?
I've always heard that NY schools are great. And while I do like a lot of the suburban schools, but I don't think they are anything spectacular.. and the inner city schools are still trash, mostly made up of lower income and broken families.
It's funny. I hear liberals say "well our taxes get us much better roads and infrastructure in NYS".. really? Because it's potholes for 90% of the year, bumpy highways, poorly constructed intersections. And when they are working on things, it's 10 guys standing around 1 guy jackhammering..
Imo its the teachers union and our state gov. We know what we are deficient in, and we don't do anything about those things. Some of our private schools are among the best in the country so it isn't just that KY kids can't learn. From my own experience in KY schools... most teachers took that job to have their summers off and they don't want to do any 'extra' work. I know some teachers go over and above... but most are only going to do the minimum and if a kid is falling behind or half the class... they aren't going to do anything about it.
Man that last half doesn't sound all that different than teachers in NYS. They *might* care a little more, I don't know.. but doesn't seem like it. And they for sure took this job to have summers off, and they couldn't celebrate fast enough when that last day of school hits in June.
Idk, I guess my point is, I don't know how NYS schools are much better.. maybe more programs? Idk.
The Do Nothing KY Pub Legislature is worthless in their lack of support for vouchers & charter schools. Bunch of RINOS.
It depends what part of Texas. If it’s in a populated area (I live in the Houston area), you will likely pay more in taxes if you’re a property owner. I lived in and owned a house in KY for 20 years before moving here 10 years ago. Adding up property, school, PID/MUD, and sales taxes, I pay more overall taxes than I did in KY (with a similar valued house). Then I have windstorm insurance due to hurricane threat, and that adds significantly to the cost of living. No sales tax is a great marketing tool, but doesn’t always result in less taxes.
Assuming you dont mean athletics.. do you mean the freedom to choose schools? As in a lack of competition, knowing you can't go elsewhere, has made them complacent?
Ain't much better up here. You go to your school district and that's it. Youre assigned a grade school, middle school and highschool.. no other options. If you want, you can go to private school and those start at $10,000/year and go all the way up to $50,000/year.. obviously not feasible for most people.. and those schools aren't perfect either.
This whole state is scared to death of the teachers union and its hurting our kids. Dam shame.
I've said this here before but Kentucky doesn't have a teacher's union. There is the KEA but it's just an association. Teachers can't go on strike in this state, so basically their "union" has no power. Sure, they can try one of those "sick outs" but that wouldn't last long term as teachers don't get infinite days to take.
Amazes me when people here want to hate on teachers when they are quitting in droves since the pandemic and many schools in our state are not staffed well, especially in subjects like math, science, and special education. Enrollment in teacher education programs in the state has nosedived over the last decade. Last I checked EKU was graduating less than 5 math teachers for high school. That's not sustainable.
Why would the GOP be scared of the "teachers union" (which doesn't exist) when they have a super majority in the state legislature? Seems like a boogeyman excuse for me.
I agree that education options are a good thing, though. Problem is that when this state faces an employment crunch in education I don't see how teachers are going to get recruited to more private or charter options that typically pay less and provide fewer benefits than the public system.
Ask Matt Blevin. The teachers got him beat. It may not be a union but it's a group that is led by people who don't necessarily speak for the majority. I'm not hating on all teachers. I know teachers who have told me this too. I know teachers who have quit because of the system, and they aren't allowed to teach. I know teachers who are punished for trying too hard because it makes other teachers feel like they look bad.
School choice was pretty popular on most polls I've seen. Why does it lose in every state and city it's voted on? Of course people don't want to teach. We got the same problem with cops, dr's, nurses, plumbers, carpenters, mechanics, soldiers, cooks... A private school would have standards that would protect teachers and reward success. If a student threatens a teacher they will be back in that school and able to threaten the teacher again. Go private and kick that kid out and then someone would have to have a special school for violent kids with horrible home life... quit punishing kids from good families.
Whining about “the teacher’s union” in Kentucky is full of **** and clueless. Teachers in Kentucky don’t have a union. Unions can bargain for salary, benefits, and working conditions, as well as strike. Only a handful of counties in the entire state (fewer than 10) have bargaining for teachers and school employees. In addition, public employees, including teachers, are prohibited from striking by state statute. Teachers in Kentucky have a professional association they can choose to belong, but it’s FAR from being a union and has no union rights.
I’ll also add that Kentucky schools are far from “the worst in the nation.” You’ll have to travel down south to the deep red states like Louisiana, Mississippi, and Alabama to find the worst rated schools in the US.
Bevin's plan got beat because he was a poor tactician. He could have overcome some of those protests if he had the will Scott Walker had because, again, a "sick out" isn't an effective strike mechanism. Bevin had a habit of putting his foot in his mouth and that's why he lost the governor's race (which had big implications for how this state approached COVID). He just didn't have the political mind of someone who knew how to get things done. More evidence of this was the 2018 General Assembly elections where the KEA was supposed to let their voice be heard and it made zero change in the state legislature's composition.
I think the reason school choice never gets off the ground in many places is because once you start looking at the logistics it becomes difficult. Like, you are going to give parents a voucher or let money follow their child. That's great but what if they can't transport their kid to a better school? What if they can't pay for a uniform or other school supplies? Or what if the school they want to go to is full and isn't accepting new students? And what if the student has an IEP or disability and the school they want to go to isn't capable of meeting those services? So in some cases school choice doesn't leave you any choices! And again, typically these private/charter schools pay less and give fewer benefits. Teachers in those schools are also not part of the state pension systems, so that's another mark against them.
Edit: I think another thing is that there are a number of counties where there wouldn't be many school choice options even if passed the legislature and the KY Supreme Court gave it a thumbs up. You'd see lots of options in Northern KY, the Greater Louisville area, Bowling Green, and Lexington. However, I don't think there would be as many in Western, Eastern, or Southern KY where populations have continued to dwindle over the last few decades. People are moving more into the interior of the state so that's where your options would be but those wouldn't be accessible to everyone.
I agree that our schools have issues with discipline and accountability. There are lots of things that need a second glance but some problems have become so ingrained it will take some heavy lifting to fix many of them.
The teachers weren't responsible for Bevin's loss. They are overwhelmingly dems who were not going to support GOP candidates. Bevin acting like an arrogant jerk for four years cost him the race. Republican AG Daniel Cameron won his race that year by over 210,000 votes against a well known/funded dem. Bevin by lost less than 10,000. So 220,000 people who voted Cameron refused to support Bevin. Those weren't dem teachers but rather moderate Republicans and independents.
One thing that always stood out to me about that governor's race was that Bevin lost Warren County AND a lot of Northern KY counties. I mean that's been traditionally Republican territory for a long time in this state. When I saw he was losing those places on election night, I knew he was toast. One could make the argument that Bevin's comments about tolls for the Brent Spence Bridge cost him the election too. People in Northern KY were irate about that idea.
OK. So I guess our schools will get better any day now. Lets just keep doing what we have been and let the same people run things. Fine with me. My kids are out of school.
I agree with most of your post. I’d also add that outside of a few urban areas, Kentucky is VERY rural with many schools that are the centers of their communities. If you talk with residents in these areas, they tend to be very proud (and even protective at times) of their schools and rate them highly. These rural areas largely see no need for private or parochial options that would be funded with public dollars.
My brother is a teacher in Ohio at a private school but from EKY. I'm amazed at the difference in opportunities they have. Obviously every sport is available(either at school or league), but clubs like robotics don't exist or are just now becoming a thing in a large part of KY. More advanced technology education. Recruiters from the government(not just the military) comes in and talks about careers, field trips to banks and things like that. Internship options in HS. Retired sports figures visiting and talking to the kids. Your eyes are opened to a world of opportunity in their school system.
Down in the 606 there aren't a lot of experiences like that and kids do not see much opportunity other than just graduate and get a job local. Only there are no jobs other than minimum wage, school board, jail, police, etc...
tl;dr- Ky schools outside of where the money is offers little opportunity/experiences and are 15-20 years behind.
Down in the 606 there aren't a lot of experiences like that and kids do not see much opportunity other than just graduate and get a job local. Only there are no jobs other than minimum wage, school board, jail, police, etc...
tl;dr- Ky schools outside of where the money is offers little opportunity/experiences and are 15-20 years behind.
I agree that our public schools need reform and that our students need better options. I only disagreed with the idea that the teachers vote cost Bevin the election. Bevin being arrogant and generally unlikable cost him the election.