CHARLESTON, WV (WOWK) — The West Virginia House has passed Gov. Justice’s income tax cut bill. It now goes to the Senate to be voted on.
Gov. Justice proposed a 10% personal income tax reduction on July 6, which he says will put $254 million, “back into the hands of the people of West Virginia.”
The proposed tax cut will be retroactive to January 1, 2022, and the governor’s office says that it will put $254 million back into West Virginians’ pockets.
I’ve been the biggest proponent of completely eliminating our state personal income tax. It will drive job growth, population growth, and prosperity in West Virginia. But the most important thing to do is get started right away. In the past year, gas prices have gotten out of control and inflation is through the roof. West Virginians need help right now.
Once we get the ball rolling, we can keep coming back and chipping away at our personal income tax until it’s completely eliminated. When you look at states like Florida, Texas, and Tennessee, they have no personal income tax and their state economies are growing like crazy. There is a direct correlation. People are moving to no-income-tax states because they can keep more of their hard-earned paycheck, which spurs ever greater economic activity. It’s a cycle of goodness producing goodness. That’s what I want in West Virginia, and I hope that the Legislature will agree with me and pass this bill.WEST VIRGINIA GOV. JIM JUSTICE
Below is a chart detailing tax cuts by income level under the proposed plan:
|Amount Made by Individual||Percentage Cut|
|$0 to $10,000||33% tax cut|
|$10,000 to $25,000||19% tax cut|
|$25,000 to $40,000||16% tax cut|
|$40,000 to $60,000||11% tax cut|
|More than $60,000||9% tax cut|
The governor’s office says that tax brackets will remain the same, and tax rates will drop for every income level.
Gov. Jim Justice issued the following statements today after the West Virginia House of Delegates voted bipartisanly to pass his proposal to permanently reduce the state’s personal income tax by an aggregate of 10%:
“I thank Speaker Roger Hanshaw, Finance Chairman Eric Householder, Majority Leader Amy Summers, and members of the House of Delegates for voting overwhelmingly to pass my proposal to cut personal income taxes.
“I encourage the Senate to vote in favor of my proposal.
“This is a good deal for all West Virginians. This tax cut will come as an immediate relief to families who are paying the price for rampant inflation across the country while also setting us up to bring generations of prosperity to West Virginia.
“In contrast, the tax plan proposed by the Senate favors big companies over small businesses and hard working West Virginians by giving millions in tax cuts to corporations with the elimination of the business personal property tax. It puts control over county budgets in the hands of the Legislature, with no guarantee that the money will continue to flow if West Virginia sees an economic decline. Do we really want to play a game of chance when it comes to our schools and our police, fire, and EMS services? It’s a big spend with big risks.
“My proposal minds our store and capitalizes on the incredible economic successes we’ve seen this year by giving back the maximum we can right now while staying within the guidelines of the federal government.
“Furthermore, the Senate’s plan to eliminate the personal property tax on vehicles will equal roughly the same amount per family as a 10% reduction in personal income tax. But that’s the limit. This is only our first step in reducing the personal income tax. Their plan would be a one-time only cut. My proposal also sets West Virginia up to continue eliminating the personal income tax by 10% or more each year until it gets to zero. That’s 10 TIMES more savings than the personal property tax on vehicles!
“Additionally, the personal property tax on vehicles is a reduction of $152 million, my proposal gives $254 million back to West Virginians, which over the next 10 years would total over $2.5 billion!
“At the end of the day, what the Senate is proposing is ‘Build the field and wish and hope they come.’ That’s not wise. Reducing the personal income tax has been proven time and time again in many other states as an economic and population driver beyond belief.
“My proposal offers the quickest way to return tax dollars to hardworking West Virginians and puts West Virginia on a pathway to eventually eliminate the personal income tax entirely, which will drive phenomenal growth to our state for generations to come. But we need to move on this before it’s too late. With the unbelievable economic growth our state has achieved this year, now is the time to provide this major tax break for our people.”