CHARLESTON, W.Va. (WOWK) — Gov. Jim Justice (R-WV) signed the largest tax cut in West Virginia state history into law on Tuesday.
Right now, a person making $80,000 per year pays $5,200 in state income tax each year. The House Bill 2526 slashes income taxed by nearly a quarter, meaning that same person will now keep over $1,100 more each year.
The personal income tax is being slashed, but not everyone agrees on who it helps most. Democrats say it is not enough for lower-income workers, but Republicans say it will get people spending.
Gov. Justice eventually wants to eliminate the entire state personal income tax, but he praised House and Senate leaders with a bill that will put $750 million back into the state economy.
The bill would also rebate personal property taxes that people have paid on their vehicles. And small businesses would see a reduction in their equipment and inventory taxes.
On Saturday, the House of Delegates voted to approve a Senate tax cut proposal, and only four members in the lower chamber voted no. The bill went into affect immediately.
The West Virginia Center of Budget and Policy criticized the bill for being “fiscally reckless,” and called it “a house of cards that is about to fall.”
“State lawmakers will find themselves in an untenable situation, forced to either further slash a budget that’s already been cut to the bone or raise other taxes–usually sales and property taxes, which hit poorer workers, families, and communities harder than wealthier ones,” said the center.