The economic picture for Kentucky’s state government continues to improve.
During a lunch and learn session sponsored by the Todd County Chamber of Commerce, 16th District State Representative Jason Petrie shared that improvements have been made over the last eight years.
He said that from 2000 to 2016, new economic investments across the state each year averaged around $2.3 billion. That number now sits around $7 billion.
The economic investment fell to around $2.3 billion in 2020 due to COVID-19. He added while neighboring states like Tennessee and Indiana have continued to see population growth, the Commonwealth has to continue to see improvements, or the state will fall drastically behind.
One way to improve, according to Petrie, is tax reform. State legislators have been reworking the taxes, mainly focusing on the income tax rate.
In January 2024, the income tax rate will fall another .5 percent to 4%, but conditions have not been met yet for a similar reduction in January 2025. He added that the population boom, especially in southern portions of western Kentucky, has proven very beneficial.
Petrie said that even as the state’s income tax rate falls, they have continued to increase the tax base by expanding what is being taxed – mainly discretionary services. He added that many people think they are lowering taxes in one area and then raising it in others.
While Petrie represents all of Todd and Logan counties and the northeastern portion of Christian County – he serves as the chairman of the state’s House Appropriations and Revenue Committee.
