West Virginia Governor Jim Justice wants to get rid of state income tax and offset it with a 2% increase in sales tax and a luxury tax on items over $ 5,000
- The proposal would cut personal income tax by 60% for the first year and remove it entirely in three years
- Justice said the plan would generate over $ 1 billion in revenue for the mountain state and offer cash discounts to some residents
- To get rid of income tax, Justice said the sales tax would increase from 6% to 7.9%
- There would also be changes in other taxable areas, including alcoholic and non-alcoholic beverages, tobacco products and professional services
West Virginia Governor Jim Justice wants to get rid of income tax by increasing state consumer sales tax by about 2% and adding a tax on luxury goods that cost $ 5,000 or more.
The proposal would cut income tax by 60% for the first year and remove it entirely in three years – while generating over $ 1 billion in revenue for the mountain state and the ability to offer cash discounts to some residents.
To get rid of income tax, Justice said sales tax would rise from 6% to 7.9%, Fox Business reported.
Governor Jim Justice welcomes a group of business executives from across West Virginia to meet to discuss his plan to abolish state income tax
According to a press release, the judiciary is hoping the abolition of state income tax will attract more residents – as the state has seen population decline in recent years
In a tweet, the judiciary claimed that the proposal would give residents more “positive net dollars in their pockets”.
Justice also wrote on Twitter that the tax changes will lead the state into a prosperous future
Sales tax would also be expanded to include computer hardware and software, advertising, electronic data processing, gym membership, and professional services – including legal and accounting services.
The proposal would also affect the state soft drinks tax for the first time since 1951 Tobacco products and alcoholic beverages.
A new excise tax of $ 2.25 would be charged on a pack of cigarettes or similar product, up from $ 1.20 according to the invoice text. A 31-gallon keg of beer would now have a tax of $ 29.25 – down from $ 5.50. Bottled soft drinks would levy a 6 cents tax – just 1 cent.
“We have a strong economy, the state is on the right side, and that takes us to an incredible level,” said Justice.
Western Virgins making less than $ 35,000 a year would receive a tax refund check that would be around $ 1,483, according to WVNews.
“So we gave these people $ 52 million cash discounts so they could pay a little more consumer sales tax … and still have money in their pockets,” Justice said, according to Fox News.
If the proposal is passed into law, controls would almost double by the third year.
“You would be from the planet Mongo if you didn’t believe anything was coming,” Justice said, according to WVNews.
The judiciary is hoping the tax proposal will bring people to the state, where the population fell by 3.8% between 2010 and 2020, which is the largest population decline in the country, according to a press release.
“It could be an avalanche of people moving to West Virginia because we don’t have income tax. We know some will come and that will help. ‘
Other states with no income tax include: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.