25 to watch in 2025: Rep. Jason Petrie leads income tax cut charge. Could he cut more?

Name: House Appropriations & Revenue Chair Jason Petrie, R-Elkton.

Background: An attorney by trade, Petrie rose through the ranks in Frankfort to take on the most prized and often most scrutinized chairmanship in the House. As chair of the House Appropriations & Revenue Committee, Petrie shepherded House Bill 8 through the legislature last year. That bill put the state on a path to completely eliminating the income tax, a long-desired policy outcome for state Republicans.

A graduate of Berea College and Ohio State University’s law school, Petrie has represented a slice of Southwestern Kentucky since 2017.

Republicans have generally cheered the bill, which has cut the income tax rate down from 5% to 4% in half-point increments over the past three years, while Democrats have been more skeptical of the effect it could have on state funding for vital services. However, Democratic Gov. Andy Beshear has endorsed a cut from 4% to 3.5% in this legislative session.

As chair, Petrie also wields control over the state budget, running the show when it comes to approval or disapproval of proposed projects and spending items like infrastructure or paying down pension debt.

Why he’s someone to watch in 2025: Petrie’s effort to cut the income tax rate has unified Republican caucuses that don’t always agree on other issues. A bill affirming a tax cut in 2025 to get the state down from 4% to 3.5% personal income tax rate is widely expected at the start of session.

It’s possible the cut to 3.5% could precipitate more discussions on what, exactly, the end goal is. Income tax still provides for roughly one-third of all state revenue and other Republican leaders have signaled that the state won’t be able to cut further than 3% without having to expand taxation far beyond the modest sales tax expansion enacted alongside House Bill 8.

Based on committee meetings over the interim, Petrie has an interest in stronger oversight on the state’s Medicaid spending. Under Beshear, Kentucky’s Medicaid program has rankled Republicans like Petrie.

He has proposed the formation of an oversight committee on Medicaid programs. In recent years, spending on such programs has caused friction between Democratic governors like Beshear and his father, Steve Beshear, and Republicans in the legislature.

What others say about Petrie: “Jason Petrie has proven to be the right man in the House to champion fiscal discipline. I expect no less from him in 2025,” Andrew McNeill, president of the Kentucky Forum for Rights, Economics & Education said. “I hope he does (provide more Medicaid oversight) because someone needs to.”

This story was originally published January 29, 2025 at 4:00 AM.

Austin Horn

Lexington Herald-Leader

706-571-8597

Austin Horn is a politics reporter for the Lexington Herald-Leader. He previously worked for the Frankfort State Journal and National Public Radio. Horn has roots in both Woodford and Martin Counties.