CHARLESTON, WV (WOWK) — It is shaping up to be the battle of the tax cuts at the West Virginia State Capitol where both parties are rolling out their plans.

The House of Delegates and State Senate agree they want West Virginians to keep more of their own money but in vastly different ways. Democrats are focusing on where you shop, while Republicans want to help where you work.

In the Democrats plan, the state sales tax would be cut from the current 6%, down to 4.75%. In the GOP plan, all income tax rates in the state would be lowered. Right now, both parties say no new taxes or increases are needed.

“We all know that inflation is up right now due to the pandemic. Folks are struggling just to pay their bills, for the everyday things that they need. And this is going to help ease that burden for every single West Virginian,” said State Sen. Stephen Baldwin, (D) Greenbrier – Minority Leader.

“Currently there’s five income tax brackets right now. We will reduce everyone of those across the board. That way any West Virginian who has any earned income, is going to see tax relief. It’s a win for all West Virginians,” said Del. Eric Householder, (R) Berkeley – Finance Chairman.

Both parties say they will pay for their tax cuts plans with the estimated $700 million budget surplus that is projected for this year. Each party has a differing plan on using some of the money in the state’s “rainy day fund,” for reducing taxes.

Last year there was a proposal to cut state income taxes, but offset that with an increase in the sales tax.
The measure passed the Senate but died in the House.