Lowering taxes in W.Va. right move

Lawmakers in Charleston made the prudent decision this past week when they agreed to a compromise with Gov. Jim Justice for an additional cut to the personal income tax rate. Starting on Jan. 1, the current 5.21% top personal income tax rate paid today will lower to 4.83%.
This is a move that continues to signal that West Virginia leaders are serious about making the state a destination for those seeking a location with wonderful amenities — and a lower tax burden.
“Even a little bit is meaningful,” said Delegate Larry Kump, R-Berkeley. “Anything we can do to reduce the tax burden on our taxpayers is a good thing.”
“This is a path we’ve been going down and we should continue to support it,” added Delegate Clay Riley, R-Harrison. “We should continue to reduce the taxes and reduce the burdens on West Virginians and continue to put money back in their pockets.”
We couldn’t agree more. In fact, if anything, the next governor has an even bigger responsibility to ensure the momentum created over the past 24 months doesn’t come to an end.
Consider: since the beginning of 2023, the state has cut the personal income tax rate three times. At the beginning of 2023, the top rate was 6.5%; at the beginning of 2025, it will be 4.83%. The tax cuts have allowed earners in West Virginia to keep $626 million of their own money.
But even with all the good work done, it’s not happening fast enough, with the goal — if we really want West Virginia to stand out from its neighbors — being the total elimination of the state’s income tax.
Consider those living in North Central West Virginia, in the Northern Panhandle or along the Ohio River from Parkersburg to Huntington. Those residents, starting next year, will pay a top rate of 4.83% on income. In Pennsylvania, the state tax on income is 3.07%, while Ohio’s rate lowered in July from 3.75% to 3.5%.
But it’s not only the highest earners who are paying more. West Virginia’s rates for anyone earning over $40,000 are still higher than Pennsylvania and Ohio.
People decide where to live based on how much they will pay in taxes — particularly higher income earners. Companies decide where to locate depending on where they can find an eligible work force. West Virginia needs to be more aggressive in lowering taxes. The next governor — either Patrick Morrisey or Steve Williams — needs to continue the work, look through every department and find a way to help West Virginia be competitive.
If we want a truly dynamic economic future, then we must take the step Tennessee and other states have taken and truly give high-level professionals a reason to move here.
Let’s be clear: No one is going to move to West Virginia simply because we have only slightly higher taxes than Ohio or Pennsylvania. It’s time to stop dancing around the issue of trying simply to be on par with our neighboring states and look to a model where tax policy would drive economic growth. That must start with lower income tax rates than our neighbors.
Lawmakers must start discussions in February — that’s when the next legislative session starts, given that we’ll be electing a new governor next month — on eliminating the state income tax. It makes sense.