Thursday, February 16, 2017

What Would Eliminating the Income Tax Mean for West Virginia? [feedly]

What Would Eliminating the Income Tax Mean for West Virginia?

Reducing the income tax and replacing it with a higher sales tax is a strategy that has been tried over and over in other states with little or nothing to show, other than revenue erosion that brings cuts in support for schools, transportation and other true building blocks of broad prosperity. A better course for West Virginia would be to reform the tax system in ways that would close our looming budget gap, tie what people owe more closely to their ability to pay, and help more hardworking men and women provide their families with a secure future.

While there are no details yet about what a West Virginia income tax cut would look like or what would be included in a sales tax hike, State Senate leadership and Governor Justice said their goal was to eliminate that tax altogether. Income tax cuts and proposals in other states have involved significant increases in other taxes – those that affect low- and middle-class households more than the wealthy – and major cuts to essential services.

Replacing the income tax with a broader based sales tax and rate increase in West Virginia would raise taxes on 60 percent of families while giving the top 1 percent a tax break of over $27,000. Instead of cutting the income tax, lawmakers should pursue efforts to limit itemized deductions, modernize tax brackets, and create a refundable Earned Income Tax Credit.

On Wednesday, February 15, WVCBP Executive Director Ted Boettner presented at the Covenant House in Charleston on how a shift from income tax to a higher sales tax would benefit the wealthy and destabilize the state's revenue system. View the presentation.

 -- via my feedly newsfeed

No comments: