Justice’s income tax reduction plan picks up praise, criticism

CHARLESTON, W.Va. — Members of the legislature emerged from the House Chamber Wednesday night with various opinions about Gov. Jim Justice’s plan to cut the state income tax in half and using tax increases to replace a portion of the revenue.

Eric Householder

House Finance Committee Chairman Eric Householder, R-Berkeley, said he’s been waiting to have the income tax discussion for the 10-plus years he’s been in the legislature.

“I’ve never had that opportunity to have a good and honest debate of what that would do for the citizens in our state,” Householder said.

Justice’s proposal is to cut the income tax in half to start with. He said the wealthiest earners would see their tax reduced by a third.

House Speaker Roger Hanshaw, R-Clay, said Justice and leading lawmakers have been talking about the plan for about six weeks. Hanshaw said what Justice laid out is a “starting point.”

House Speaker Roger Hanshaw, R-Clay

“To say that there’s significant support in the House to eliminate the personal income tax is an understatement. We’re not there yet on an agreement on a plan but we’re working toward it every day,” Hanshaw told MetroNews Wednesday night.

Justice wants to make up the $1.6 billion half of the tax brings in by raising the sales tax by 1.5%, increasing taxes on soda and cigarettes, a plan to tier severance taxes, taxing professional services along with a new wealth tax.

House Minority Leader Doug Skaff, D-Kanawha, criticized Justice’s plan. He said the numbers don’t add up.

“The bottom line is he wants to shift the tax burden from the left pocket to the right pocket and average West Virginians are going to be the ones that pick up the slack,” Skaff said.

Doug Skaff

Skaff added he heard nothing in Justice’s speech about ways to assist small businesses or how to keep college graduates in West Virginia.

Del. Shawn Fluharty, D-Ohio, said Justice is missing an opportunity for major revenue by not supporting the legalization of recreational marijuana, efforts that are underway in Pennsylvania and Virginia.

“We refuse to compete with our neighbors and he doesn’t even bring it up,” Fluharty said. “He wants to bring people into our state, look at the evidence in other states and that’s by capitalizing on cannabis.”

Senate reaction

Craig Blair

Senate President Craig Blair praised Justice for “taking bold steps to secure our future right now.”

“Governor Justice laid out a plan that will enable the Legislature to provide a tax cut to working West Virginians, and he’s done this while presenting the Legislature with a budget that does not increase spending over last year,” Blair said.

Quick start

The legislature won’t waste time getting started. There’s a meeting Thursday morning in the House Chamber with both the House and Senate finance committees. Members will hear details on Justice’s proposed budget.

Amy Summers

The House Judiciary Committee is scheduled to take up a broadband bill Thursday morning while the House Education Committee’s Thursday agenda includes charter schools, education savings accounts and new state Treasurer Riley Moore’s Jumpstart Savings Plan.

House Majority Leader Amy Summers, R-Taylor, said the quick start is by design.

“We’re going to work very long hours and steady for two weeks and push a lot of our bills out,” Summers said.





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