http://wvmetronews.com/2017/06/15/senate-overwhelmingly-passes-revenue-bill-with-new-tax-cut-mix/
CHARLESTON, W.Va. — The state Senate voted 30-2 in favor of a new revenue bill that includes income tax reductions.
That overwhelming vote on Thursday night sets up a vote in the House of Delegates, where both Republicans and Democrats have been critical of the idea of income tax cuts at this time.
It’s all taking place within days of the new fiscal year July 1.
Gov. Jim Justice conceived of the new income tax structure today and pushed for it during a meeting with legislators and lobbyists that ended abruptly.
The proposed framework would cut personal income taxes by an average 5 percent starting Jan. 1, 2018, followed by triggered cuts of 5 percent each of the following three years — for an average 20 percent cut over the full four-year period.
Under the latest incarnation of Justice’s proposal, wages over $150,000 would not be subject to a tax cut.
The triggers are what the governor calls “Eric Nelson’s triggers” — formulated by the House Finance chairman who has actually been skeptical of the entire idea.
Read this until your eyes cross:
The triggers would use the 5-year average growth of personal income tax revenue and sales tax revenue. That rate would be multiplied by the general revenue collections of the most recent fiscal year, subtracting any Rainy Day funds used to balance the budget.
After that the state tax commissioner would calculate the amount of money it would cost the state if the 5 percent cut would go into effect. The cost of the cut would be subtracted from the first number.
If the result shows that revenue has grown, then the next average personal income tax cut would go into effect.
To add revenue to potentially reach Justice’s preferred budget total of $4.35 billion, the framework would raise the state sales tax to $6.5 percent.
Justice, describing the plan today, said it was worth a try to put income tax funds back in people’s pockets.
The governor also described a rebate structure for the lowest income brackets.
“That ought to help our most needy, and we can do all this without further cuts and without hurting people more. For crying out loud, that’s what we intend to do,” Justice said.
House Speaker Tim Armstead earlier Thursday said he hoped the governor wouldn’t introduce the new revenue proposal at all. Both Republicans and Democrats in the House have been against the income tax reductions while the state is up against both a deficit and a deadline.
Armstead said he tried to convey as much during the Thursday morning meeting with the governor, lawmakers and lobbyists.
“I certainly hope he listens to the meeting that was held today and abandons that plan because I think he will have zero support for that,” Armstead, R-Kanawha, said after an afternoon House floor session.
Armstead continued, “There were several members of the House and Senate there, and they were trying to convey to him that nothing has changed, there is no support for this proposal and as we get closer and closer to July 1, there is less support and more urgency for us to pass a budget.”
The House of Delegates is supposed to convene at 10 a.m. Friday.
CHARLESTON, W.Va. — The state Senate voted 30-2 in favor of a new revenue bill that includes income tax reductions.
That overwhelming vote on Thursday night sets up a vote in the House of Delegates, where both Republicans and Democrats have been critical of the idea of income tax cuts at this time.
It’s all taking place within days of the new fiscal year July 1.
Gov. Jim Justice conceived of the new income tax structure today and pushed for it during a meeting with legislators and lobbyists that ended abruptly.
The proposed framework would cut personal income taxes by an average 5 percent starting Jan. 1, 2018, followed by triggered cuts of 5 percent each of the following three years — for an average 20 percent cut over the full four-year period.
Under the latest incarnation of Justice’s proposal, wages over $150,000 would not be subject to a tax cut.
The triggers are what the governor calls “Eric Nelson’s triggers” — formulated by the House Finance chairman who has actually been skeptical of the entire idea.
Read this until your eyes cross:
The triggers would use the 5-year average growth of personal income tax revenue and sales tax revenue. That rate would be multiplied by the general revenue collections of the most recent fiscal year, subtracting any Rainy Day funds used to balance the budget.
After that the state tax commissioner would calculate the amount of money it would cost the state if the 5 percent cut would go into effect. The cost of the cut would be subtracted from the first number.
If the result shows that revenue has grown, then the next average personal income tax cut would go into effect.
To add revenue to potentially reach Justice’s preferred budget total of $4.35 billion, the framework would raise the state sales tax to $6.5 percent.
Justice, describing the plan today, said it was worth a try to put income tax funds back in people’s pockets.
The governor also described a rebate structure for the lowest income brackets.
“That ought to help our most needy, and we can do all this without further cuts and without hurting people more. For crying out loud, that’s what we intend to do,” Justice said.
House Speaker Tim Armstead earlier Thursday said he hoped the governor wouldn’t introduce the new revenue proposal at all. Both Republicans and Democrats in the House have been against the income tax reductions while the state is up against both a deficit and a deadline.
Armstead said he tried to convey as much during the Thursday morning meeting with the governor, lawmakers and lobbyists.
“I certainly hope he listens to the meeting that was held today and abandons that plan because I think he will have zero support for that,” Armstead, R-Kanawha, said after an afternoon House floor session.
Armstead continued, “There were several members of the House and Senate there, and they were trying to convey to him that nothing has changed, there is no support for this proposal and as we get closer and closer to July 1, there is less support and more urgency for us to pass a budget.”
The House of Delegates is supposed to convene at 10 a.m. Friday.