West Virginia Governor Proposes Historic 50% Cut in Personal Income Tax

The Governor of West Virginia, Jim Justice, has issued a statement following the state House of Delegates’ vote in favor of his proposal to reduce the state’s personal income tax by 50%. The Governor thanked the Speaker, Majority Leader, and members of the House of Delegates for their overwhelming support of the proposal and encouraged the Senate to vote in favor as well, based on a statement released by Governor Jim Justice on January 18, 2023, on its official website.

The proposal aims to reward West Virginians and combat Inflation by cutting personal income tax, putting money in residents’ pockets, and eliminating the tax entirely in the future. The governor believes this will bring prosperity to the state.

Based on a report by the West Virginia Record on January 23, 2023, the proposal includes a 50% personal income tax reduction over three years, with $700 million being set aside to establish a personal income tax reserve fund that almost equals the current rainy day fund. This reserve fund will act as an insurance policy to protect against any shortfalls in the future. The phase-out of the personal income tax begins with a 30% reduction in January 2023 and an additional 10% reduction in the following two years.

The governor plans to provide a major tax break for residents due to the state’s recent economic growth. The proposal aims to eliminate the personal income tax and is expected to boost economic growth and receive support from both parties.