02/15/2008
CONTACT: John Hodges, 304-345-4535 or Todd Pack, 615-872-5897
CHARLESTON, W.Va. -- All or part of this statement may be attributed to John Hodges, state director of the National Federation of Independent Business, West Virginia's leading small-business advocacy group:
"Small business is the heart and soul of West Virginia's economy, and we're grateful that the Legislature and Governor Manchin have reached a compromise on a plan to phase out the state's burdensome business franchise tax.
"Members of NFIB/West Virginia who attended the governor's roundtable discussion on tax issues in summer 2006 listed the franchise tax as one of their most troublesome taxes. West Virginia's franchise tax is unfair to all businesses, but it's especially hard on small businesses. It's a tax that can push a company that's barely turning a profit into the red. Small businesses account for about 97 percent of the state's employers, so the franchise tax really could hurt the state's ability to create jobs and have a healthy economy.
"NFIB believes the agreement to eliminate the franchise tax by 2015 will help West Virginia build a strong, stable economy. There may be some who believe the franchise tax should be eliminated tomorrow, and in a perfect world, we would agree. But we are grateful to know that there is a strong sentiment in state government to help small businesses in a fiscally responsible manner."
