A personal example may show the fairness and significance of a tax revision change. A little more than 20 years ago, we had five young children to support, and we paid about $1,700 in state income taxes each year.
Over a 19-year period, our income increased by 200 percent. Inflation during this time went up 59 percent. Our state taxes went up only 50 percent.
As an average percentage tax rate, our federal rate doubled over time, while our state rate was cut in half, from 3.6 percent to only 1.8 percent. After 19 years of family economic progress, we could, should and did pay proportionately more federal taxes.
Following state laws, we paid proportionately less in Kentucky income tax than we did 19 years earlier.
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Now that my wife and I are retired, we will still have an income significantly exceeding our income over 20 years ago, even after considering inflation. But we will probably pay very little (even less) state income tax because most of our income will be from retirement pensions with state income tax exclusion provisions.
The pension income tax exclusion should be significantly reduced. A change could be fairer to families, and the state needs more revenue.