NFIB State Director Gil White released the following statement today in response to Gov. Jim Justice’s proposed 50% cut in the state’s personal income tax:
“Our members hope the legislature approves Governor Justice’s plan to slash West Virginia’s personal income tax rate by 50% over three years. The vast majority of small businesses in the state are organized as pass-through entities, meaning their owners pay taxes at the individual rather than the corporate rate.
“It’s been a rough few years for small businesses in West Virginia, beginning with the pandemic and continuing with supply chain and labor issues, a spike in fuel prices, and soaring inflation that has driven up the cost of everything from raw materials to customer receipts.
“West Virginia ended the last fiscal year with a budget surplus of $1.3 billion. We believe the state can afford to reduce the individual tax rate without having to make up the difference by raising taxes and fees someplace else.
“It’s easy to forget, but 98.8 percent of all businesses in the state are small businesses. By easing the financial pressure on these Main Street businesses, the legislature can clear a path for them to fully recover from the recent economic setbacks and continue to grow and create jobs.”