Blog Posts > Justice Proposes Pouring Federal Relief in ‘Bucket’ While Touting Income Tax Cut. Can He Do That?
February 28, 2021

Justice Proposes Pouring Federal Relief in ‘Bucket’ While Touting Income Tax Cut. Can He Do That?

West Virginia MetroNews – Gov. Jim Justice has repeated an idea of setting aside financial “surplus,” built on the strength of federal relief dollars, into a “bucket” while touting his income tax cut proposal that could leave a big hole in the state budget. Read the full article.

Analysts say it’s doubtful West Virginia could use the federal relief money that way — and it doesn’t seem to be in line with federal intent.

“The state fiscal aid under the CARES Act and the American Rescue Plan is intended to cover costs incurred specifically related to the economic and public health crisis,” said Kelly Allen, executive director of the West Virginia Center on Budget & Policy, a think tank.

“It would be unthinkable — and likely not allowable — to use relief funds intended for families and communities to pay for tax cuts. It is untenable and fiscally irresponsible to use one-time funds to pay for permanent tax cuts.”

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