W.Va. tax threat looms from 'fiscal cliff' - Beckley, Bluefield & Lewisburg News, Weather, Sports

W.Va. tax threat looms from 'fiscal cliff'

  • Local NewsLocal News

  • Thursday, May 23 2013 1:19 PM EDT2013-05-23 17:19:49 GMT
    Courtesy: Google Maps
    Road repairs will slow down traffic along a section of U.S. Route 219 in Lewisburg.The West Virginia Division of Highways announced that one lane of Route 219 will be closed during the day starting on
    Road repairs will slow down traffic along a section of U.S. Route 219 in Lewisburg.The West Virginia Division of Highways announced that one lane of Route 219 will be closed during the day starting on
  • Thursday, May 23 2013 1:01 PM EDT2013-05-23 17:01:05 GMT
    Emergency responders were called to the scene of a train accident on Monday, May 20.  A person was apparently hit by a CSX train in a remote part of Fayette County.  The call came in at around 1:30 p.m.
    The victim was apparently covering her head with a blanket to shelter from the heavy rain storms.
  • Thursday, May 23 2013 12:42 PM EDT2013-05-23 16:42:24 GMT
    Shades of the tragedy in Newtown, Conn. darken southern West Virginia as a man from Shady Spring threatens to "relive the Newtown shooting." Deputies with the Boone County Sheriff's Office arrested David
    Shades of the tragedy in Newtown, Conn. darken southern West Virginia as a man from Shady Spring threatens to "relive the Newtown shooting."
CHARLESTON, W.Va. (AP) -

By LAWRENCE MESSINA
Associated Press

West Virginia appears largely insulated from near-term program cuts if the new year arrives without an agreement on federal revenues and spending. But many state taxpayers will take an immediate hit if President Barack Obama and Congress fail to avoid the so-called fiscal cliff.

Negotiations continue in Washington to avert automatic tax increases and spending cuts set to begin in January. West Virginia Budget Director Mike McKown says crucial federal funding for state highways and Medicaid are exempt. Most other state agencies wouldn't feel the effects for a year or more.

But wage-earners should expect to start paying more toward Social Security, even if the fiscal cliff is avoided. Deputy Revenue Secretary Mark Muchow says people who pay income taxes also face possible higher rates and fewer credits.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.