BECKLEY, W.Va. (WVVA) Governor Jim Justice, (R) West Virginia, is expected to go to great lengths during his speech on the state on Wednesday evening to move the state towards the abolition of income tax.
Tax revenue accounts for nearly 43 percent of government spending at nearly $ 2 billion.
How will the state compensate for the loss of income?
Ideas heads of state are considering include expanding the tax category to include professional services, increasing sales tax, and cutting government spending.
Some lawmakers believe the payout could be much higher as new residents and businesses move to the area.
In an interview with WVVA News on Saturday, Del. Brandon Steele, (R) Raleigh County that the state realtors are already seeing a sizeable increase in people interested in moving to the state due to the pandemic, which the state must do for the benefit of the year ahead.
“(People who work from home) are looking for the most attractive place to do this. When you look at our natural beauty, low property taxes, low cost of living, and low house price, West Virginia is extremely attractive. And if you add the potential for income tax abolition, now we’re going to have conversations about our state, which is growing beyond the 1.8 million people we have lived in for more than 40 years. ”
Del. Steele is also the new chairman of the House Government Organization’s committee, which this year will look for new ways to cut government spending.
With the governor’s state of the state address on Wednesday evening, lawmakers are expected to get back to work on Thursday.