Kentucky’s tax system is known for its stability and predictability, with consistent rates for major taxes such as sales tax, income tax, property tax, and some excise taxes. This stability benefits both taxpayers and the state, allowing for easier budgeting and planning. However, while stable rates ensure predictable revenue streams, they also limit the potential for revenue growth. To accommodate future financial needs, Kentucky may need to consider adjustments to certain tax structures. The impact of different taxes on the economy varies, with the low state sales tax making Kentucky attractive for businesses and consumers, while the rising motor fuel tax burdens those reliant on transportation. The progressive income tax system aims for fairness, but concerns arise regarding potential inequities due to the fixed property tax rate and varying property values. To address these concerns, Kentucky may need to explore reforms such as tiered rates or exemptions. The paper also analyzes specific policy changes, such as the implementation of a flat corporate income tax rate and the introduction of a sports wagering tax, highlighting their potential effects on businesses, revenue generation, and specific activities.