In a surreal turn of events, we find ourselves in the company of the likes of gubernatorial candidate Patrick Morrisey and Senate Finance Chair Eric Tarr — all of us opposing Gov. Jim Justice’s insistence on an additional 5% personal income tax cut.
What we agree upon: There is no urgent need for the extra cut to the personal income tax, which will already receive a 4% cut because of triggers built into the law passed last year, which is in addition to the over 21% tax cut that has already gone into effect.
Where we disagree is in the nuance. Both Morrisey and his gubernatorial opponent Steve Williams think any additional cuts — beyond the triggers already enshrined in law — should be left to the next administration. Tarr isn’t adamantly opposed to the idea; if Justice can provide a way for the lost revenue to be made up, then he’ll consider it. We, on the other hand, see no justification for an additional tax cut.
We dislike watching taxes chip away at our paychecks just as much as the next person. However, we understand a tax cut as small as the one Justice is advocating will give us back very little while costing the state a lot. As individuals, we’re only getting a few dollars every paycheck, but the state will lose $110 million in revenue. For illustrative purposes, the median household income is $56,000; a 5% cut to the tax liability means they get back less than $100 per year, or about $8 a month.
Maybe that money is a huge deal for some people. (Although, if an extra $8 a month is a huge deal for someone, they need more help than a 5% tax break.) But it’s definitely a big deal for the state. Those dollars could be paving our roads, funding our schools and supporting programs that help West Virginians. Hell — $100 won’t even buy you a new tire after you blow one out on a pothole.
The only individual who benefits from an additional 5% tax cut is Jim Justice — and not because of the money.
Justice is in his last months as governor and on the final stretch of a campaign for U.S. Senate. This tax cut would give him a political win: something he can tout as he pursues higher office — not to mention a distraction from his family’s financial quagmire. That’s why he’s already called a special session for Sept. 30 and instructed the Legislature to work on this additional cut.
Republicans in the Legislature who are also on the ballot Nov. 5 will probably fall in line; they’ll want the political win, too, especially in these final weeks. That’s why it’s up to the handful of Republican legislators who aren’t on the November ballot — like Senate President Craig Blair and Sen. Robert Karnes — to put the brakes on Justice’s proposal. If they succeed, they can claim a legacy of protecting West Virginia’s fiscal future.
But if the Legislature passes Justice’s additional tax cut, he gets the political win while West Virginia’s financial security takes a loss.
