Many Kentucky residents would pay less in state income taxes under a proposal moving through the state legislature.
A deal announced Monday by Republican leaders would impose a 5 percent income tax rate for Kentucky residents. It would replace the current tax structure, which has a top bracket of 6 percent and various brackets below that.
Republican Senate President Robert Stivers says most people pay 6 percent because people in the lower brackets don't make enough money to pay taxes. But Jason Bailey with the Kentucky Center for Economic Policy says some people just above the poverty line would likely pay more.
The change would result in $114 million less revenue for the state, to be offset by an expanded sales tax on some services.
