CHARLESTON, WV (WOWK) — A big tax cut is on the way for many in West Virginia. The personal income tax is being slashed, but not everyone agrees on who it helps most.
On Saturday, the House of Delegates voted to approve a Senate tax cut proposal, and only four members in the lower chamber voted no.
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 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.
Democrats say it is not enough for lower-income workers, but Republicans say it will get people spending.
“Well, we’d like to see some things grow. We’d like to see more business come into West Virginia,” Del. Charlie Reynolds (R-Marshall) said. “This is a good plan, it gives people back some money.”
“So what the Democrats offered was a 100% income tax cut to those making 80,000 a year and below,” Del. Mike Pushkin (D-Kanawha, State Democratic Party Chairman) said. “What we got back from the Senate, it’s really minuscule for the part of the income tax.”
Gov. Jim Justice (R-WV) has promised to sign the tax cut bill into law Tuesday at 12:30 p.m.
The governor 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.