Experts agree: Tax cuts needed in W.Va.
Tax experts agree: cutting the personal income tax will benefit West Virginians and make the state more competitive in attracting new residents. Gov. Jim Justice has been taking that message on the road this week as he pushes the state Senate to support his tax cut proposal.
Justice’s plan, as passed by the House through HB2526, would phase in a 50% tax reduction over the next three years — 30% this year, and then an additional 10% in years two and three. The proposed tax cut would return $1.2 billion to West Virginia taxpayers.
When fully implemented in three years, West Virginia’s personal income tax rate will go from its current 6.5% to 3.25%. It will be the lowest of all its border states other than Pennsylvania.
Here’s what some tax experts are saying about the proposed tax cut:
• Grover Norquist, founder of Americans for Tax Reform: “This pro-growth income tax cut will be a huge win for all West Virginians. … This surplus should be used to lower income tax rates and keep more money in the hands of taxpayers across the Mountain State.”
• The Tax Foundation: “West Virginia has the revenue and, so it seems, the legislative desire to improve the state’s tax competitiveness this year. It can be done. … West Virginia is one of only seven states that hasn’t offered any significant tax relief since 2021 — and five of the other six forgo an individual income tax. Surely West Virginia policymakers can find a way forward to get themselves off that short and unenviable list.”
• The Cardinal Institute of West Virginia: “It is worthwhile asking, ‘why reduce the income tax?’ There are a number of reasons … (and) most of these reasons boil down to more money in the pockets of job-creators, employees, and citizens and fewer economic distortions.”
It’s time for West Virginia to move forward on meaningful tax relief. The personal income tax plan offered by Justice is a step in the right direction toward a brighter future.
