Talkline with Hoppy Kercheval  Watch |  Listen

Justice road tests his income tax cut proposal

Gov. Jim Justice is taking his tax cut pitch on the road.

Justice led a livestreamed “town hall” about the tax cut from the Capitol on Monday. Now he’ll be in Parkersburg on Wednesday, Beckley on Thursday and Wheeling on Friday. There could be more.

The governor, a Republican, who is strongly considering a run for U.S. Senate, has an affinity for town hall events across the state to pitch his positions.

Last fall, he campaigned across West Virginia against Amendment Two, a constitutional measure that would have allowed legislators to exempt some categories of personal income taxes. In that case, the public voted down the amendment.

Two years ago, the governor held a series of town hall events to push for a plan to cut income taxes while offsetting with expanded sales taxes. In that case, delegates voted down the governor’s proposal 100-0.

Now he is hitting the road again, accompanied by Revenue Secretary Dave Hardy and others. The governor did not specify whether his well-known dog would accompany the road trippers.

“I’m going to go back out on the road. I’m going to be as positive as positive can be,” Justice said of his campaign before the public.

The governor said he’s not looking for a fight. “I’m going to go out and I’m not going to throw rocks at anybody.”

Justice has proposed personal income tax cuts of 50 percent over three years. The House of Delegates overwhelmingly passed the bill representing the tax cut this week. Senators have been more skeptical.

“We’re two thirds of the way there,” Justice said, referring to himself and the House. “We’re waiting on the Senate. I’m very hopeful that the Senate is going to come and come our way and realize this is the way to go.”

The reduction is structured as 30 percent the first year, then 10 percent each of the following two years. The same percentage reductions would be applied to all the current tax brackets.

A fiscal note assessing the bill concludes it would decrease General Revenue Fund collections by about $161.8 million in fiscal 2023, $1,084.5 million in fiscal 2024, $1,229.6 million in fiscal 2025, and $1,492.6 million in fiscal 2026.

Right now, West Virginia is running a budget surplus of hundreds of millions of dollars. But that’s based on several factors, including high energy prices that have produced high-performing severance tax returns and artificially-low state revenue projections that have enforced relatively “flat” budgets for several years in a row.

Craig Blair

Senate President Craig Blair, R-Berkeley, earlier this week questioned whether the desire for a tax cut matches the state’s proposed spending. He provided a document showing that if a range of proposed supplemental appropriations go through, the remaining unappropriated balance to surplus would be just $200,745.

Blair said senators are working on their own 50 percent tax cut, and he wants a more specific list of the administration’s spending priorities.

“The plan that is before us right now that came from the House is not doable. I don’t have the votes in the Senate if I wanted for that. So we’re going to have to improve on it, or they’re going to need to get back to the drawing board also,” Blair said in his office Monday.

“But I would recommend that the House and the governor do what I’ve already asked them to do, and that’s prioritize their spending because you can’t have both.” Referring to the governor’s names for average West Virginians, Blair said, “Toby and Edith know that.”

Brandon Steele

Appearing today on “Radio Roundtable” on WJLS-AM, Delegate Brandon Steele said he hopes the Senate will come around on the tax plan.

“I just want a plan. I feel like the governor has one,” said Steele, R-Raleigh. “I’ve seen the numbers that have been put out there on it. Let’s do it.

“Now the Senate’s got it in their hands. You know, it always frustrates you over in the House when you see them take a really great idea and say ‘We need to make this look the way we want it to look and that’s the only thing we’re willing to do.’ So I was hoping this rhetoric wouldn’t pop back up between the Senate and the governor.”

Steele concluded, “Hopefully the people will get onto them about getting something done and putting something forward that works, that we can achieve.”





More News

News
West Virginia Parkways Authority prepares for Easter travelers on the Turnpike
More than 500,000 transactions are projected at the West Virginia Turnpike through Monday.
March 28, 2024 - 11:30 am
News
Governor vetoes vaccination exemption bill, and now that debate is primed to get even bigger
House Bill 5105 would have removed vaccination requirements for students in virtual public schools, and it also would have allowed private and parochial schools to set their own standards.
March 28, 2024 - 11:14 am
News
Lottery reports $50,000 Powerball ticket sold in Charleston
Four numbers and Power Ball matched.
March 28, 2024 - 10:24 am
News
MetroNews This Morning 3-28-24
Summary of West Virginia news/sports/weather for Thursday, March 28, 2024
March 28, 2024 - 6:25 am