CHARLESTON, W.Va. — As the 2021 West Virginia regular legislative session heads into its final week, dozens of citizens stood outside the state Capitol in brisk weather Friday to protest how tax and budget proposals could affect people’s lives.
State community organizations, including the West Virginia Center on Budget & Policy, called legislators to say ‘No’ to HB 3300, which would eliminate the state personal income tax while resulting in other increased taxes, cuts to existing government services or both.
Groups also protested the proposed Senate budget which includes cuts to various social service programs and to West Virginia University and Marshall.
Kelly Allen, executive director of the Center on Budget & Policy, told MetroNews the event was about showing how people could be affected by the tax plan and budget cuts.
“Since the legislative session has been pretty closed off to the public, it feels like there is momentum around the tax bill that people want this. When we talked to folks, this is not what the top priorities are. They want to see programs funded,” Allen said.
HB 3300 passed the House on March 29 in a version that would cut at least $150 million in income taxes a year until they’re eliminated. MetroNews previously reported that the proposal does not contemplate any other tax increases to make up for the cut, raising questions about how government services could be sustained.
The Senate Finance Committee took up HB 3300 the day after and made many changes to it before passing out of committee. The Senate’s plan, which is closer to Gov. Jim Justice’s plan, makes a big initial cut of the income tax while raising a variety of sales and other taxes.
The Senate version raises sales taxes even higher than the governor had contemplated, to 8.5 percent. And it reinstitutes the food tax at 2.5 percent.
Gary Zuckett, executive director of West Virginia Citizen Action Group said in a release that the Senate tax plan would represent a net tax increase for the average household in WV of $369 in year one.
“Once fully phased in, the tax cut for the top 1 percent is 1,252 times greater than that of the median household in our state. It would create a $1.4 billion hole in the budget within 5 years, and give West Virginia the highest state sales tax in the country,” Zuckett said.
According to the WVCBP, the Senate plan would give West Virginia the highest state sales tax in the country, make West Virginia one of the only four states to tax professional services, make West Virginia one of only 14 states to tax groceries, and give West Virginia the fourth-highest combined state sales and hotel tax in the country.
Senate and House leaders have been invited to meet with Justice on Monday in a tax ‘summit’ to discuss all versions. Allen said these are all rushed proposals to cut taxes.
“They certainly need to slow down. I don’t think this is a policy that should be pursued during a pandemic. I hope they will listen to input from people and the need to preserve public services, particularly as we come out of a pandemic,” she said.
Allen described the promises of growth from cutting the state personal income tax as “empty.”
“The amount of economic growth that we have to see to offset tax cuts of this proportion is seven times greater than what we see right now. We think a plan should be realistic and it shouldn’t sacrifice public services,” she said.
Rally to Reject HB 3300! pic.twitter.com/jRGysIdMUL
— Kelly Allen (@kellakelWV) April 2, 2021
Speakers at the event included Rev. Jeff Allen, director of the Council of Churches; Rev. Ronald English, president of the Charleston NAACP and pastor of First Baptist Church of Charleston; Sam Hickman of the West Virginia Chapter of National Association of Social Workers; Cody Nunley, Marshall University student; and Autumn McCraw, a Jobs and Hope program participant.
The Jobs & Hope program is among the many cuts proposed in the House and Senate budgets. The program that works for addiction recovery and workforce development would be subject to cuts of more than $3 million.
McCraw spoke on behalf of participants, as one herself, and said a cut to the program would be a huge mistake.
“Jobs and Hope offer services to people just like me to become respected, valued tax-paying citizens again. Cutting Jobs and Hope would take away from that for sure. It would harm so many people,” she said.
This week, the Senate put wheels in motion on a proposed budget that includes across-the-board 1.5 percent cuts to state agencies, as well as a $12 million cut to WVU and a $6 million cut to Marshall.
The Senate Finance Committee passed its proposed $4.567 billion budget on Wednesday afternoon. Other programs facing cuts or elimination with the proposal include Educational Broadcasting Authority, Meals on Wheels and the MARC train, which Eastern Panhandle commuters use.