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Governor addresses conference committee on taxes

CHARLESTON, W.Va. — Gov. Jim Justice today addressed a conference committee set up to work out differences in tax bills meant to be a main component of the budget for the coming fiscal year.

Charles Trump

“I can’t recall having seen that before in my service,” Senator Charles Trump, R-Morgan, said later, during today’s floor session. “It was extraordinary. It really was. What we just heard over the last hour and a half was as clear an articulation of West Virginia’s problems and potential as I’ve heard from anyone.

“Quite frankly, I was inspired by the governor’s remarks.”

During about an hour of the conference committee meeting, the governor said he is confident that an income tax reduction that is part of a revenue plan aimed at balancing the coming year’s state budget won’t have detrimental effects on future budget.

The governor also allowed that there’s no certainty the income tax reductions would result in significant economic stimulation, but he said he would like to offer West Virginia citizens a tax break.

He advocated on behalf of a severance tax tiering proposal that he says would give struggling coal operations a break and ease their ability to retain employees.

And he again advocated for his $2.8 billion roads and bridges spending proposal, which he says will produce the kind of economic growth necessary to ensure the other proposals won’t fail.

“The most inspiring thing he said is, ‘Don’t be afraid,'” Trump said on the Senate floor. “I am reinvigorated with what we’ve been working on.”

That inspired several comments during today’s Senate floor session focusing on the relative merits of the revenue bill, which would raise the sales tax to 6.5 percent, broaden what is subject to the tax and decrease the personal income tax.

What still has to be determined by the conference committee is the depth of the personal income tax cut and the structure of triggers that could result in future decreases.

These are estimates of how a revenue bill could affect state finances.
Robert Karnes

Senator Robert Karnes, R-Upshur, one of the biggest backers of the income tax reductions, said on the floor that he was encouraged that questions coming from conference committee members were “a growing recognition that this is a real plan that has real legs.

“It seemed to me the questions were about how can we make this work. I think we have a much broader sense now that this is going somewhere.”

Mike Romano

Senator Mike Romano, D-Harrison, said legislators have the right to question the revenue proposal, though.

“We have that right,” Romano said on the Senate floor. “We have to vote our conscience. We have to believe what is the right answer for West Virginia.

“It’s been the Senate Republicans against the Senate Democrats, the House Republicans and the House Democrats. We’re getting down to the witching hour, and that’s what’s making people come to the table.”

Romano added, “If we do this and there’s no growth, this is going to be a disaster. You really have to search yourself. Ask if we know enough to do what we’re about to do.”

See the governor’s remarks:

Meanwhile, both Senate President Mitch Carmichael and House Speaker Tim Armstead were guests on MetroNews’ “Talkline” to discuss the budget situation:

The conference committee includes Senate Majority Leader Ryan Ferns, Senate Minority Leader Roman Prezioso, senators Ed Gaunch, Craig Blair and Glenn Jeffries, House Finance Chairman Eric Nelson and delegates Paul Espinosa, Carol Miller, Brent Boggs and and Dave Pethtel.





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