LOUISVILLE, Ky. — As we get closer to the November election, Spectrum News 1 is doing a series of stories looking into where the gubernatorial candidates stand on several key issues.

What You Need To Know

  • Gov. Andy Beshear, D-Ky., vetoed an income tax cut bill last year, citing concerns he had with the part of that bill which would expand sales tax on certain services

  •  Gov. Beshear signed HB1 this year, which cuts the state income tax rate from 4.5% to 4% starting next year

  • After that, the Republican Party of Kentucky issued a statement saying it was the "latest example of Beshear taking credit for Republican policies"
  • Republican candidate Daniel Cameron said, "I will be the governor who eliminates the income tax"

Last year, Democratic Gov. Andy Beshear vetoed the Republican-backed House Bill 8, which established incremental income tax cuts so long as certain conditions are met. In response to that veto, Beshear said he was opposed to the part of the bill that would expand sales tax on certain services, not the income tax reduction.

Beshear broke from party lines this year by signing the GOP-backed House Bill 1, which cuts the state income tax rate from 4.5% to 4% starting next year. This is what Beshear said right before signing that bill.

“The best way to provide that relief would have been a reduction in the sales tax. A reduction in the sales tax for a certain period of time would have meant things that cost too much cost less, but the general assembly refused to go that route,” said Beshear. “What I am faced with is a bill that would lower the income tax that has some long-term repercussions for potentially funding state services, but it would put at least a couple hundred dollars back in the pockets of most Kentuckians at a time when they need it.”

After Beshear signed HB1 this year, The Republican Party of Kentucky issued a statement saying it was the “latest example of Beshear taking credit for Republican policies.”

Republican gubernatorial candidate Daniel Cameron has voiced support for the state super majority’s long-term goal to eliminate the state income tax entirely. He spoke about this during an event on Aug. 20 when Cameron laid out what he calls his vision for prosperity.

“My first budget and every one that I submit as governor will keep Kentucky on the path to eliminating the income tax. We will help Kentuckians keep more of our own money,” said Cameron. “I will work constructively with leaders of the General Assembly to make sure our tax code is simple, fair and competitive so that families and Main Street thrive. I will be the governor who eliminates the income tax.”

It recently came to light that Kentucky’s income tax rate will not go down another half percentage point in 2025, after the state failed to meet a condition for further cuts.

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