With West Virginia’s revenue surplus heading toward $800 million again this fiscal year, some residents are wondering whether another state income tax break could be on the horizon.
If Gov. Jim Justice gets his way, the answer is clearly yes.
“Let’s do it again,” Justice said. “I mean, let’s just keep doing it. The more money we put in the hands of our people — it’s their money in the first place — but the more money that we put in the hands of our people, the better things happen.”
It was Justice who first championed total elimination of the state income tax. And he still wants to get to that point. But lawmakers were only willing to go to a 21.25% reduction last year, with the promise that predetermined economic triggers would continue the tax cuts in coming years.
One of those triggers could be met this summer, prompting another reduction, but some lawmakers are angling to change what was put in place last year.
State Sen. President Craig Blair, R-Berkeley, recently told WV News he would like to see lawmakers take action during the upcoming special session to delay the trigger by one year.
“How we set that trigger up was a mistake,” Blair said. “It needs to be adjusted so it’s one year out. Not so that it saves the state any money — that’s not it. It’s being able to have long-term budgets.”
Blair’s Republican majority in the Senate also appears to favor a delay, and has also battled Gov. Justice’s other tax cut proposals before eventually accepting ideas like the eventual phase-out of state income tax on Social Security benefits.
We fully understand lawmakers’ concerns about being able to pay the state’s bills, but we also know that the Justice administration, and this Legislature, have shown the ability to cut government spending while generating additional revenue.
State revenue officials have said they believe the triggers that lawmakers put in place last year were designed to be conservative enough, meaning if the threshold is met, then residents should see additional tax relief.
Justice remains adamant that total elimination of the state income tax is possible and would serve to bring more people to West Virginia.
“As fast as we possibly can, what we need to do in this state, can you imagine what growth levels we would have in this state if we had no personal income tax?” Justice asked. “I have been an advocate for no personal income tax forever.”
It’s hard to argue with Justice’s vision — and delivery — on promises of economic prosperity as the state’s coffers continue to ring up large surpluses.
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