FRANKFORT, Ky. — Democratic Gov. Andy Beshear on Friday signed a Republican-backed tax cut bill, saying he hopes it provides relief for Kentuckians struggling with high prices amid stubbornly high inflation.
Beshear's action on the measure — which will lower the state's individual income tax rate — comes after the proposal drew Democratic opposition as it moved through the GOP-dominated legislature.
The governor, who is facing a tough reelection campaign this year in Republican-trending Kentucky, announced in a social media video that he was signing the tax cut measure.
"I hope as we get through this period where, again, groceries cost too much, that this helps everybody out there at least a little bit," Beshear said.
The governor's action ended days of suspense over whether he would sign or veto the measure.
The measure will lower the state's individual income tax rate by a half-percentage point to 4%, effective Jan. 1, 2024. It follows up on last year's tax overhaul, which resulted in a reduction of the tax rate from 5% to 4.5% at the start of this year. The new measure finalized that cut.
Beshear vetoed last year's bill revamping portions of the state tax code. He objected to provisions that extended the sales tax to many more services. Republican lawmakers easily overrode his veto. As an alternative, the governor last year backed an unsuccessful effort to temporarily cut the state sales tax rate to take some of the sting out of rising inflation that fueled higher consumer prices.
Beshear on Friday acknowledged that cutting the income tax could have potential "long-term repercussions" for funding state services. But he pointed to the state's strong economy that has fueled record-setting revenue collections as justification for the follow-up tax cut.
Throughout his message, he stressed the hardships that inflation has caused for Kentuckians.
"Things are tough out there," the governor said. "Inflation is real. And while gas prices have come down, a grocery store bill is still way too high. And while this issue is temporary, it's still going to last for some time into the foreseeable future, and our people need relief."
Democratic lawmakers opposing the tax-cut measure said many Kentuckians won't reap savings from the reduction. And they noted that last year's legislation extended the state sales tax to more services, which they said created a new tax burden.
Beshear's decision to sign the top GOP legislative priority comes as a dozen Republican candidates compete for their party's nomination for governor in the May primary.
Beshear's bid for a second term is drawing national attention to see if the popular incumbent can win again in the red state. Beshear has won praise for his responses to devastating tornadoes and flooding, as well as a string of economic development and infrastructure successes.
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