Governor Jim Justice ceremonially signed Senate Bill 2033 on Thursday, marking a significant move to reduce West Virginia’s personal income tax rate by 2%. This legislation, which was passed during a recent special session, is projected to decrease state revenue by approximately $46 million.
Justice expressed optimism about the tax cut’s potential to stimulate economic growth in West Virginia, stating, “What could we possibly do? And if anybody says there’s something that could drive more growth to West Virginia than that, you’re out of your mind.” The tax cut will equate to an extra 40 cents per week for the average resident, according to the West Virginia Center on Budget and Policy.
The governor had initially proposed a more substantial 5% tax reduction but settled on 2% after discussions with lawmakers concerned about the long-term financial implications for the state. This reduction follows a previously scheduled 4% income tax cut that will take effect in January 2025 due to an economic trigger.
During the signing ceremony, Justice, known for his colorful presentation style, brought out a gold bar on a silver platter as a prop. He humorously recalled a past incident where he presented cow manure during a news conference in 2017, demonstrating the evolution of his political stance since switching from Democrat to Republican.
Justice emphasized that the tax cut represents a step toward eliminating personal income tax in the state, referring to average residents as “Toby and Edith.” He noted, “We are sending a message to the world that West Virginia is on a pathway of getting rid of their personal income tax.”
As he approaches a likely election campaign for the U.S. Senate seat currently held by Joe Manchin, Justice’s push for this tax cut could be seen as an effort to bolster his appeal among voters ahead of the elections.