DANIEL CAMERON Income Tax (Louisville, Paducah: insurance, home, exemption)

[TuckyUSA]

I see in the news that Daniel Cameron has come out in favor of eliminating the KENTUCKY INDIVIDUAL INCOME TAX. That is great news and will help move the state forward. People who are looking at Tennessee as a future home maybe will consider Kentucky if the income tax is eliminated.



But, Kentucky has another problem....................the KENTUCKY INHERITANCE TAX. Only 6 states still have an inheritance tax and 2 of those 6 have recently taken action to start the process of elimination. Kentucky needs to end this tax to help draw people to the state----especially retirees.

[marino760]

I think many people think the inheritance tax is worse than it really is. Here is how it works from the Kentucky Dept of Revenue


There are three classes of beneficiaries: Class A, Class B, and Class C.Class A beneficiaries include:surviving spouse, parent, child, grandchild, brother, sister, half-brother, and half-sister
If the date of death is after June 30, 1998, all Class A beneficiaries are exempt from paying Kentucky inheritance tax.
Class B beneficiaries include:niece, nephew, half-niece, half-nephew, daughter-in-law, son-in-law, aunt, uncle, great-grandchild
Note: nieces and nephews by marriage and great-nieces and great-nephews are Class C beneficiaries.Class B beneficiaries receive a $1,000 exemption and the tax rate is 4 percent to 16 percent. See tax chart on page 6.
Class C beneficiaries include all persons not included in Class A or Class B. Cousins are considered Class C beneficiaries. Class C beneficiaries receive a $500 exemption and the tax rate is 6 percent to 16 percent. See tax chart page 6.

So, a spouse, child, step child, sibling or half sibling, parent, grandchild, pay no inheritance tax at all and those relatives by far receive the bulk of all inheritance.

Don't get me wrong, I would also like this tax to be appealed, but it doesn't affect the vast majority of people.

[hogsrus]

Originally Posted by TuckyUSA

I see in the news that Daniel Cameron has come out in favor of eliminating the KENTUCKY INDIVIDUAL INCOME TAX. That is great news and will help move the state forward. People who are looking at Tennessee as a future home maybe will consider Kentucky if the income tax is eliminated.



But, Kentucky has another problem....................the KENTUCKY INHERITANCE TAX. Only 6 states still have an inheritance tax and 2 of those 6 have recently taken action to start the process of elimination. Kentucky needs to end this tax to help draw people to the state----especially retirees.

Here is a good read on the matter. Don't let the headlines fool you...read it all. Andy don't like it. I envision a lot of cardboard checks and more promises he can't keep, again, in our future.

https://www.msn.com/en-us/news/other...ys/ar-AA1g3bv3

[TuckyUSA]

Originally Posted by hogsrus

Here is a good read on the matter. Don't let the headlines fool you...read it all. Andy don't like it. I envision a lot of cardboard checks and more promises he can't keep, again, in our future.

https://www.msn.com/en-us/news/other...ys/ar-AA1g3bv3

Thanks hogsrus for posting that information-----I read the news article and the letter from the Kentucky State Budget Director to Senator McDaniel and Representative Petrie about Kentucky NOT MEETING one of the triggers set by the Kentucky General Assembly to allow an additional half-percent cut to the state's income tax rate.


Perhaps they should not have spent so much money in the last state budget!


Anyone have any ideas about what the legislature will do in January when they pass the next state budget? Do you think they will go ahead and do another income tax cut?

[GWoodle]

Originally Posted by TuckyUSA

Thanks hogsrus for posting that information-----I read the news article and the letter from the Kentucky State Budget Director to Senator McDaniel and Representative Petrie about Kentucky NOT MEETING one of the triggers set by the Kentucky General Assembly to allow an additional half-percent cut to the state's income tax rate.


Perhaps they should not have spent so much money in the last state budget!


Anyone have any ideas about what the legislature will do in January when they pass the next state budget? Do you think they will go ahead and do another income tax cut?

Is there any way to find out how the state is doing?

Here in TN you have reports about budget surplus. So we got 3 month grocery tax holiday. As economy improves could extend to more months. They did vote to keep local tax harmless.

Not sure what it would cost to remove tolls from Louisville bridges. Could be competing ideas. I do see KY is busy working on I-69 from near Paducah to state line at Fulton.

[marino760]

Originally Posted by GWoodle

Is there any way to find out how the state is doing?

Here in TN you have reports about budget surplus. So we got 3 month grocery tax holiday. As economy improves could extend to more months. They did vote to keep local tax harmless.

Not sure what it would cost to remove tolls from Louisville bridges. Could be competing ideas. I do see KY is busy working on I-69 from near Paducah to state line at Fulton.

KY is on track for another record breaking surplus in revenue for 2023, and the economy is booming. The projected surplus is over $1 Billion. https://kychamberbottomline.com/2023...udget-surplus/

The state fell short in another criteria put into place, having to do with the percentage of revenue vs spending. Someone can correct me if I'm wrong about this.
https://news.yahoo.com/kentucky-fail...9.html?src=rss

[TuckyUSA]

The Kentucky Department of Revenue has published GUIDE TO KENTUCKY INHERITANCE AND ESTATE TAXES that can be found at the site below. There is a chart on page 6 of the guide that gives the dollar amounts and percentages. I was shocked when I found out about the amount that would apply to me. If the legislature won't work on this problem, then it may be time for me to move out of the state and perhaps on to TENNESSEE


If anyone has the opportunity to mention this issue to anyone in the legislature, I hope you will do so!!



https://revenue.ky.gov/Individual/In...1%20(1-21).pdf

[kygman]

Retirees from the state get $5000 life insurance. A former coworker of mine passed away last month. His daughter said if she kept the money, a thousand would be taken out for inheritance tax. If she put it all on the service the funeral home would get the entire $5000.