What Federal Tax Reform Means For Kentucky
It’s the middle of tax season and individuals as well as businesses are working to figure out what changes to the federal tax code mean for them.
Kentucky won’t be as affected by the federal tax reform as many other states. That’s partly because the commonwealth doesn’t combine the standard deduction and the personal exemption.
Jared Walczak is a senior policy analyst with the Tax Foundation. He said while he thinks federal tax reform will encourage investment in the U.S., it’s still up to the states to change their own tax codes.
“States need to make sure their own tax codes are competitive so that when that investment does come into this country that their well positioned to claim it,” said Walczak.
Walczak said a competitive tax code should be neutral and avoid picking winners and losers. It’s unclear if Kentucky lawmakers will take up tax reform this year.