MORGANTOWN – Gov. Jim Justice took his plan to cut the West Virginia state income tax to Morgantown Tuesday with the message that now is the time for the state Legislature to phase it out.
“I want to make everyone cash positive,” said Justice during a “town hall” meeting at West Virginia University’s Erickson Alumni Center. “But, I am open to tweaking the plan.”
Justice’s plan calls for a 60% tax cut on wages, Social Security, retirement and unemployment benefits, which would cost the state more than a billion dollars. To make up for the lost revenue, the governor wants to raise the state’s sales tax from 6% to 7.9%. Plus, he has proposed changing the sales tax to include computer hardware and software, legal and accounting services, selected advertising, electronic data processing, health and fitness club memberships, and the sales of lottery tickets.
The governor has also proposed hiking the tax on soft drinks six cents for 16.9 ounces; $4 per a gallon on syrup and five cents on 28.35 grams of dry mixture, as well as raising the tax on cigarettes to $2.25 a pack, and raising the tax on kegs, wine, liquor and E-cigarettes.
And he has proposed changing the natural gas severance tax, the oil severance tax, the wet gas severance tax, and the coal severance tax to tiered levels, moves that could bring in $50 million.
By cutting the income tax, Justice said each West Virginian would have nearly $1,500 more to spend a year.
“If we don’t do this now, while the state is in the national spotlight (for its success battling COVID-19), it will be a big miss,” he said.
Justice, who was also in Morgantown for the grand opening of the Hotel Morgan, said the state could also reverse its population loss. Since 1950, West Virginia is the only state overall to have lost population.
“You would be from the Planet Mongo if you didn’t think people would come here,” he said.
If the state Legislature passes Justice’s plan, then West Virginia would become the 10th state without an income tax, joining Tennessee, Florida, Alaska, Texas, Washington, Nevada, South Dakota, New Hampshire and Wyoming.
“This will perpetuate businesses beyond belief,” Justice said.
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