CHARLESTON, W.Va. — West Virginia Treasurer Larry Pack wants to give workers a larger tax break by eliminating the state income taxes on tips and overtime pay. Pack has called on Governor Patrick Morrisey to ask the Legislature in special session to take the step which would mirror the policy championed by President Donald Trump in his federal tax plan.
“The best and most simple way is to mirror the federal legislation. That would give you about $25,000 which you could exclude on tips and about $12,500 on overtime, ” said Pack in an appearance on MetroNews Talkline.
Pack who has been an advocate on lowering taxes believed it would serve as an incentive for many to rejoin the workforce.
“We need more workers. We have a shortage of workers in about any industry so it would help us attract these kinds of workers. Also from a small business standpoint, we have a lot of tourism and small business type folks who depend on tips like waitresses and hospitality folks, it’s really going to help in that area,” said Pack.
Pack estimated the cost to West Virginia’s coffers would be around $25 Million.
“It’s going to be a small number in terms of state government spending, but it will be a big number in terms of folks who can take advantage of this,” he said.
Pack said he’s had conversations with lawmakers and believes they can muster support of tackling the issue in a quick, one day special session.
“I think there’s a lot of interest in it, so I really do think it’s something we can move on. The later we wait into the year, the harder it is to make it effective January 1, 2025 so we’re hoping to get some movement on this quickly,” he explained.