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Manchin: Cutting state income tax a bad move for WV
By Joe Manchin
I write today with serious concerns about federal funds the state is anticipating and the harm that will come if financial decisions are made based on a reliance on these federal funds. I urge you to consider the long term ramifications of the proposal.
The total West Virginia budget is slightly more than $4.6 billion. Of that amount, $2.2 billion — nearly half — is dependent on the state income tax.
(snip)
Last March, West Virginia received $1.25 billion in federal aid to offset the impacts of the COVID-19 pandemic. In the coming weeks, I expect Congress will pass another round of pandemic relief which might provide additional aid for state and local governments. But this is the last time any state will receive this federal aid. By next year, the stash of federal funds will be gone and we will once again be fully responsible for our revenue and expenses.
If the income tax is eliminated and the additional funding from the federal government stops, West Virginia will be left with a gaping hole in its budget. The state government will be forced to make hard decisions, like choosing to fund the Children’s Health Insurance Program or domestic violence prevention efforts, Promise Scholarship or community and technical colleges.
To make long term financial decisions based on temporary financial support from the federal government is not a decision that sets West Virginia up for long term prosperity.
https://www.wvgazettemail.com/opinion/manchin-cutting-state-income-tax-a-bad-move-for-wv/article_5c5baeeb-3970-5813-b49c-84d0deb47462.html
I write today with serious concerns about federal funds the state is anticipating and the harm that will come if financial decisions are made based on a reliance on these federal funds. I urge you to consider the long term ramifications of the proposal.
The total West Virginia budget is slightly more than $4.6 billion. Of that amount, $2.2 billion — nearly half — is dependent on the state income tax.
(snip)
Last March, West Virginia received $1.25 billion in federal aid to offset the impacts of the COVID-19 pandemic. In the coming weeks, I expect Congress will pass another round of pandemic relief which might provide additional aid for state and local governments. But this is the last time any state will receive this federal aid. By next year, the stash of federal funds will be gone and we will once again be fully responsible for our revenue and expenses.
If the income tax is eliminated and the additional funding from the federal government stops, West Virginia will be left with a gaping hole in its budget. The state government will be forced to make hard decisions, like choosing to fund the Children’s Health Insurance Program or domestic violence prevention efforts, Promise Scholarship or community and technical colleges.
To make long term financial decisions based on temporary financial support from the federal government is not a decision that sets West Virginia up for long term prosperity.
https://www.wvgazettemail.com/opinion/manchin-cutting-state-income-tax-a-bad-move-for-wv/article_5c5baeeb-3970-5813-b49c-84d0deb47462.html
The GQP state legislature plans to eliminate West Virginia's progressive state income tax and use federal COVID relief money to temporarily make up for the loss of revenue. Then when the COVID money runs out, it will be time to Starve the Beast. When that time comes, the GQP legislature will come up with more regressive such as a sales tax increase. This has ALEC written all over it.
In this article Joe is calling them out for this treachery.
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