CHARLESTON, WV (WOWK) — Gov. Jim Justice (R-WV) signed the largest tax cut in West Virginia state history into law on Tuesday.
Here’s how it will work:
- Right now, a person making $80,000 per year pays $5,200 in state income tax each year. By slashing income taxes by nearly a quarter, you would keep more than $1,100 each year.
The personal income tax is being slashed, but not everyone agrees on who it helps most. Democrats say it is not enough for lower-income workers, but Republicans say it will get people spending.
“We put $750 million dollars back in our people’s pockets and think about what that’s going to do. The multiplier effect of just that,” Gov. Jim Justice (R-WV) said. “And not only that, it sends a message to the world that West Virginia is the place to come to.”
“We’re really concerned that the temporary surpluses that this tax cut is based on are going to run out soon,” Kelly Allen, WV Center on Budget & Policy, said. “And when that happens, we are going to see either a need to do more budget cuts, or to increase other taxes.”
Gov. Justice eventually wants to eliminate the entire state personal income tax, but he praised House and Senate leaders with a bill that will put $750 million back into the state economy.
The bill would also rebate personal property taxes that people have paid on their vehicles. And small businesses would see a reduction in their equipment and inventory taxes.
On Saturday, the House of Delegates voted to approve a Senate tax cut proposal, and only four members in the lower chamber voted no.