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Justice says he will call a special session on another tax cut

Gov. Jim Justice says he’s finally ready to call a special legislative session that would include the proposed 5% personal income tax reduction that he has been touting for weeks.

Justice first called for the 5% reduction on July 1, the start of a new fiscal year, catching legislative leaders by surprise.

Wednesday at an administration briefing, the governor said there’s been plenty of time to talk about the matter. He foreshadowed that this coming Monday he will formally announce the special session. He emphasized that it will include the income tax cut legislation, but also said it would include measures to support child care costs in West Virginia.

“For crying out loud, the Legislature — truly, we’ve had plenty of time; plenty of time to work out our differences with regard to a potential tax cut,” Justice said. “Whatever it may be that’s going to be on the call, whether it be day care or another 5% tax cut or a tax cut in addition, we’ve had plenty of time to put together and craft some form of additional tax cut. We’ve just been kicking the can down the road and kicking the can down the road.

“So I’m telling you now that on Monday I’m going to announce our special session before the end of the month and I’m giving everybody additional time to get together between now and Monday, and let’s come to a resolution rather than just kicking the can.”

The governor has consistently described calling lawmakers into a special session in August or September. Officials usually like to call special sessions at the same time legislative interim meetings are already scheduled because lawmakers already have plans to gather in Charleston and there is also usually no additional cost. But the August interim meetings came and went. And for the September interim meetings lawmakers are scheduled to gather in Parkersburg, starting Sunday.

In any case, the governor described this special session as occurring before the end of this month, although he hasn’t yet specified dates. The next interim meetings in Charleston are scheduled for Oct. 6-8.

Lawmakers have generally expressed caution about the governor’s 5% tax cut proposal because other tax cuts are still going into effect and because there are additional spending commitments also still going into effect — like the continued rollout of the Third Grade Success Act and estimated additional costs for more Hope Scholarship enrollment.

The state instituted a 21.25% personal income tax cut this year in a package that included further automatic reductions under certain economic conditions. West Virginia hit those economic conditions, which triggered an additional 4% personal income tax cut to go into effect.

Justice wants another 5% on top of that.

“If we want to do more than that, just tell me how we can do it,” Justice said. “But I’ve given Toby and Edith my word — the voters. I’ve given them my word that I’m going to propose that and call people back into special session.”

He suggested the alternative for lawmakers is “hoarding this money and keeping it for pet projects or whatever it may be down the road. I don’t think it’s a good idea. I don’t believe in my heart that everyone wants to do that. Let’s come up with something that is absolutely good for our people.”