After the first day of West Virginia’s Special Session, lawmakers are still unsure if the state can afford proposed tax cuts.
Democrats express concern that these cuts could lead to reductions in essential state programs. However, Gov. Jim Justice insists the state’s finances are strong enough to handle them. He points out that September’s tax revenue increased by more than $14 million and the state has $2.5 billion in surplus accounts. The proposed tax cuts would reduce revenue by $100 million.
When you give that $100 million back to the people of West Virginia, they’re going to spend it here. And the multiplier effect on that $100 million will turn into ten times, turning into a billion, said Gov. Jim Justice.
State Sen. Mike Woelfel, the Minority Leader, disagrees. I think it would be up to the new governor and legislature to make a policy decision as significant as this, Woelfel said.
The House of Delegates and State Senate will reconvene Sunday at 6 p.m. By then, the joint finance committee will have reviewed the numbers to determine whether the tax cut is financially feasible.
In recent years, the state has already cut the personal income tax by 25%.