Charleston Gazette-Mail – West Virginia is one of many states set to use revenue surpluses brought by federal relief money for tax cuts. Read the full article.
After lawmakers last week near-unanimously approved $350 million in subsidies for the Mason County Nucor steel recycling plant project and further capital improvements, Democrats on Tuesday announced that they would support legislation to cut the state’s sales tax from 6% to 4.75%. No state Republicans have publicly lent support for the position.
Kelly Allen, executive director of the West Virginia Center on Budget & Policy, said lawmakers should use caution when using one-time revenue surpluses to enact permanent tax cuts. The Democrats’ proposal also would cut the amount further, to 4.5%, if the state’s Rainy Day Fund continues to swell and reach $1.1 billion, which Democrats said could happen later in the year.
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