SENATOR PHILLIP WHEELER’S LEGISLATIVE UPDATE
Week 2 of the 2025 Regular Session
After a constitutionally required three-week recess, the Kentucky General Assembly reconvened to continue the people’s business. The first and most critical order of business was passing House Bill 1, which will lower Kentucky’s income tax from 4 percent to 3.5 percent in January 2026. This reduction is part of a carefully structured process established by House Bill 8 in the 2022 legislative session.
Every Republican agrees that eliminating the income tax is the ultimate goal. However, we are committed to a responsible, step-by-step approach that includes safeguards to protect taxpayers, ensure fiscal stability, and maintain essential government services.
Kentucky’s disciplined approach has earned praise from Moody’s and other leading economic rating agencies for being a well-structured, fiscally sound path to eventually reaching a 0 percent income tax. Unlike the aggressive tax cuts that led to fiscal instability in states like Kansas and West Virginia, our plan ensures long-term success without jeopardizing the state’s financial health.
Our measured approach ensures tax reductions occur while critical government services are not put at risk. Since implementing these policies, Kentucky taxpayers have saved an estimated $1.8 billion through 2024. With this latest cut, taxpayers will save an additional $718 million annually.
I was proud to cast my vote to lower individual income taxes and advance Kentucky’s path to greater economic freedom and prosperity.
Committee meetings were back in full swing this week. The Economic Development, Tourism, and Labor Committee, which I am proud to serve as chair. We heard three bills including Senate Bill (SB) 313, which would declare June as Kentucky History Month. June 1 marks Kentucky’s birthday, making it the perfect time to celebrate our commonwealth’s contributions to the nation and reflect on the people and events that define who we are. I trust that this bill will pass the full Senate soon.
We also passed SB 23 this week, which strengthens oversight of state agency rules to ensure they are properly reviewed and accountable to the public. It establishes two types of reviews: full reviews, which take a deeper look at regulations, and informational reviews, which focus on basic updates. The bill requires agencies to participate in both, improving transparency and ensuring lawmakers have the information needed to evaluate regulations. It also allows committees to postpone informational reviews in certain situations for added flexibility.
By streamlining the process and reinforcing accountability, SB 23 helps ensure that state regulations are fair, effective, and in the best interest of Kentuckians. It now advances to the House of Representatives for consideration.
As always, it’s a privilege to serve you in Frankfort. If you have questions or ideas, feel free to contact my office at (502)-564-8100 or email me at Phillip.Wheeler@kylegislature.gov.
We’ll be back next week to continue our work in the 2025 Regular Session.
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Sen. Phillip Wheeler, R-Pikeville, represents Kentucky’s 31st Senate District, including Elliott, Johnson, Lawrence, Martin, and Pike Counties. Wheeler serves as chair of the Senate Economic Development, Tourism, and Labor Committee and vice chair of the Senate Judiciary Committee. He is also co-chair of the Capital Planning Advisory Board. Additionally, Wheeler is a member of the Senate Committees on Transportation, Natural Resources and Energy, and Licensing and Occupations.
