Just days before an election that will likely send him to the U.S. Senate, Gov. Jim Justice celebrated Thursday the signing of a bill that cuts the state’s income tax.
Senate Bill 2033which lawmakers passed during a special legislative session earlier this fall cuts the state’s personal income tax rate by 2%. This would represent a decrease in state revenue of approximately $46 million.
“What could we do in the state of West Virginia to bring more growth to West Virginia other than lowering our personal income tax,” Justice said. “What could we do? And if anyone says there’s something that could bring more growth to West Virginia, they’re crazy.”
The governor, known for the props he often uses during speeches, brought a gold bar on a silver platter for the occasion, recalling the 2017 legislative session when then-Democrat Justice vetoed the state’s Republican Legislature’s budget inserted “Political nonsense, you know what” and presented a plate of cow dung during a press conference.
Justice initially asked lawmakers to cut the tax by 5%, but changed the request to 2% as a compromise with lawmakers worried about the impact on the state’s long-term financial health.
The enacted tax cut will amount to about 40 cents more per week for the average West Virginia resident, they say West Virginia Center for Budget and Policy.
A 4% personal income tax cut will already come into effect in January 2025 as the state has reached an economic trigger.
Acting Treasury Secretary Larry Pack, R-Kanawha, told lawmakers the $46 million, including $19 million, will come from a tax bond that is nearing repayment. Another $20 million to $25 million would come from available funds after lawmakers split the former West Virginia Department of Health and Human Resources into three up-to-date departments.
The income tax cut was one of 37 bills passed during a special session of the legislative session that began Sept. 29.
The Justice Department said the 2% tax cut was not the “end do-it-all” for Toby and Edith, its nicknames for the average West Virginia voter.
“We are sending a message to the world that West Virginia is on the path to eliminating its personal income tax,” Justice said. “What’s that worth?” What is it worth? For heaven’s sake, it’s worth so much that it’s not listed in the table. In other words, we said, ‘Okay, Toby and Edith. We’ll take care of the place properly.'”
Justice, a Republican nearing the end of his second term as governor of the state, is running for Sen. Joe Manchin, I-West Virginia, in the U.S. Senate.
