West Virginia Governor to Sign Income Tax Cuts

Plan includes 2% personal tax cut and child care credit
By Newser.AI Read our AI policy
Posted Oct 9, 2024 4:00 AM CDT
West Virginia Governor to Sign Income Tax Cuts
A general view of the West Virginia State Capitol in Charleston on May 4, 2023 in Charleston, W.Va.   (AP Photo/Jeff Dean, file)

Gov. Jim Justice of West Virginia is poised to approve bills reducing state income taxes, following their recent passage in the legislature. The measures include a 2% reduction in the state personal income tax and a child care tax credit, which will benefit West Virginia families. Justice, nearing the end of his governorship and campaigning for the US Senate, has prioritized lowering taxes, having implemented a 21.25% personal income tax cut the prior year.

The 2% income tax cut will take effect from January 1, returning approximately $46 million to taxpayers. House Finance Committee Chair Vernon Criss expressed a preference for a 5% reduction, but a compromise with the Senate was not reached. The tax cut is funded by savings from dissolving the former Department of Health and Human Resources into three agencies, along with an expiring revenue bond. However, some Democrats voiced concerns about the impact on state-funded programs, with Del. Kayla Young stating discomfort regarding undisclosed funding sources for the cut.

Republicans and Democrats are divided over the potential benefits of the tax reductions. House Minority Leader Sean Hornbuckle argued that the cut might not substantially impact most working-class residents, equating to a mere 40 cents per week. Republican Del. Larry Kump countered, emphasizing that "even a little bit is meaningful" for struggling families. Meanwhile, 16,000 families stand to gain from the newly introduced child care tax credit, providing a non-refundable $225 credit, potentially offsetting $4.2 million from state taxes. (This story was generated by Newser's AI chatbot. Source: the AP)

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