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Taxpayers across the state are in danger of having their taxes risen as the state is considering a tax reform plan that will pass a significant portion of the tax burden from the state’s businesses to its citizens. Below are just some of the changes proposed from the tax summit: • Eliminating the Business Franchise Tax and Reducing the Corporate Net Income Tax. Two of the business groups represented at the summit proposed abolishing the business franchise tax, a proposition made by Governor Manchin himself when he was Secretary of State. This tax brought in $120 million in revenue for the State of West Virginia last year, and, along with the Corporate Net Income Tax, is the state’s third largest source of general revenue. Given such a large reduction in general revenue receipts and the unalterable need to provide certain critical services, it is almost guaranteed that this revenue would be made up by increasing taxes on private citizens. • Eliminating the Inventory Tax. The business groups at the summit also recommended abolishing the Inventory Tax, another stream of needed income for the state. While perhaps a tax more worth of elimination than the Franchise Tax or Corporate Net Income Tax, a solid plan to compensate for this missed revenue must be presented before cutting this tax. To do otherwise would be highly irresponsible of our state government.
• Increasing “Sin Taxes.” In a clear sign of the intent to shift the tax burden to citizens, the summit recommended raising taxes on alcohol and tobacco products. West Virginians already pay among the highest taxes for tobacco products, and the state should be looking for ways to reduce taxes on its citizens, not increase them. Sharon believes that alcohol and tobacco taxes should be increased only to fund comprehensive health care coverage for underprivilaged West Virginians, not to pay for sweeping business tax cuts. Sharon Spencer supports tax relief for both West Virginian taxpayers as well as West Virginia’s business community, however that tax relief must be delivered responsibly in a manner that does not harm one group to relieve the other. Before sweeping changes to the tax code are made, Delegate Spencer believes the state should first follow through with its multi-year commitment to eliminating the food tax. There are also opportunities to provide property tax relief by means-testing the homestead exemption, making home ownership more achievable for West Virginians.
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