West Virginia to Implement 4% Income Tax Cut in 2024
- West Virginia's personal income tax will be reduced by 4% in the new year.
- Gov. Jim Justice announced the tax cut after state revenues met the threshold.
- This tax reduction aims to benefit West Virginians by increasing their disposable income.
CHARLESTON, W.Va. (AP) — West Virginia Governor Jim Justice announced a 4% reduction in personal income taxes, effective January 1, 2024. This decision follows a previous 21.25% tax cut signed into law last year and is based on state revenues meeting the necessary threshold, as confirmed by Revenue Secretary Larry Pack and State Auditor JB McCuskey. The 2023 legislation allows for additional tax cuts tied to higher-than-expected revenue collections, with a cap of 10% on any single reduction. Governor Justice has been a proponent of eliminating the personal income tax altogether, viewing it as a means to stimulate economic growth in a state that ranks among the poorest in the nation. He has made multiple appeals to state lawmakers to support this initiative. The recent tax cut reflects a compromise between the governor's office and the state Legislature, aiming for gradual progress toward the goal of complete tax elimination. In a statement, Justice expressed optimism about the future of tax policy in West Virginia, stating, “While it won’t happen during my time as your Governor, our state is on a pathway to eliminating its personal income tax.” He emphasized the potential benefits of such a move for attracting residents and businesses to the state. Despite the governor's enthusiasm, the West Virginia Center on Budget and Policy has cautioned against further tax cuts, highlighting the personal income tax as the state's primary revenue source. They warn that ongoing budget constraints have hindered essential services like education and childcare.