House Speaker Roger Hanshaw is seeking more information about Governor Jim Justice’s proposed additional 5% personal income tax cut. Recently, Governor Justice announced that West Virginia will automatically reduce the personal income tax by 4%. He now wants to push for an additional 5% reduction.
Hanshaw stated on MetroNews’ “Talkline” that he needs to review the financial data before supporting the proposal. While he supports giving money back to the people, he emphasizes the need to balance this with investments in public infrastructure like water and fire protection.
The automatic 4% tax reduction, effective January 1, was triggered by the state’s revenue collections surpassing the inflation rate, as specified in 2023 legislation. Governor Justice is pushing for lawmakers to meet in a special session in August to approve the additional 5% cut, aiming to move toward eliminating the income tax altogether.
Senate Finance Chairman Eric Tarr expressed concerns about the feasibility of another tax cut, citing additional expenses the state has taken on in recent years. Tarr highlighted the need to either reduce spending or find a revenue swap to make the tax cut sustainable.
Executive branch officials are currently gathering data to help legislative leaders decide if the additional tax cut is viable.