Tax Reform

Why Tax Reform

A competitive and business-friendly tax code is critical to a state’s economic success and supports business attraction and expansion, job growth, higher wages, and stronger personal incomes. The Kentucky Chamber works aggressively to continually modernize and improve Kentucky’s tax structure through smart, pro-growth reforms. In 2017 and 2018, the Chamber successfully advocated for historic reforms to business taxes and individual income taxes. In 2022, the Chamber worked closely with lawmakers and stakeholders to develop a plan to carefully phase out Kentucky’s individual income tax with the goals of making Kentucky more attractive to working families and high-skilled workers. 

Thanks to the Chamber’s aggressive advocacy and bold action by state policymakers, Kentucky’s business tax climate ranking has improved from 37th in the nation to 18th on the Tax Foundation’s annual State Business Tax Climate Index.

To help inform conversations around pro-growth tax reform in Kentucky, the Kentucky Chamber Center for Policy and Research has produced several publications with critical information and research on tax issues. This work includes two partnership reports produced by the Tax Foundation. Access these reports below.