CHARLESTON, WV (WOWK) — West Virginians are now able to take home more money on their paycheck, as the state’s big tax cut law is now in effect.
The slashing of the state income tax was probably the biggest headline from this year’s legislative session.
People who collect a paycheck in West Virginia will now pay 21% less in state income taxes, as they did a year ago, and that could pump a lot of money into the state’s businesses and economy.
The new tax tables were recently sent out to businesses, and so the cuts are now in effect. And, since the tax cuts are retroactive to Jan. 1, most people will have overpaid for this year but will be refunded in 2024.
In all, $595 million will be given back to taxpayers this year, and it’s predicted that will have a huge economic impact.
“Well, the reality of the whole thing is that all of us, I don’t care who it is, all of us when we have more money, we spend more money. And as we spend money, it becomes the multiplier effect,” said Gov. Jim Justice, (R) West Virginia.
The governor and many legislators want to cut taxes by another 10% in each of the next two years.
But they will have to evaluate the state of the economy when they return for the next legislative session in January 2024.