NFIB State Director Gil White released the following statement today after the West Virginia House voted down the Senate’s version of a plan to eliminate the state income tax by a vote of 100-0:

“It appears legislators won’t reach an agreement on a plan to phase out West Virginia’s income tax before the regular session gavels to a close on Saturday, but we hope they’ll continue to work after session on a solution that eases the financial burden on small businesses and other taxpayers.

“Our members like the idea of eliminating the state income tax, but, as always, the devil’s in the details. We hope legislators will agree on a plan to phase out the state income tax that doesn’t include a big increase in the sales tax or extending the sales tax to include professional services.

“Our members also ask that any plan to eliminate the income tax includes small businesses. Our concern with Governor Justice’s original plan was that it specifically excluded pass-through entities such as S corporations and sole proprietorships, but most small businesses are organized as pass-through entities, meaning the income passes through the business to the owner, who pays taxes at the individual rate.

“We look forward to working with Governor Justice and legislative leaders on a solution that allows West Virginians to keep more of the money they earn and encourages small businesses to continue to grow and create jobs.”