Charleston Gazette-Mail, Huntington Herald-Dispatch – State tax collections in November continued to top expectations, likely as federal pandemic stimulus funding continues to churn the state economy. Read the full article.
Justice and Revenue Secretary Dave Hardy have downplayed the impact of the infusion of more than $3 billion of federal pandemic stimulus funds into the state as being a significant factor in strong state tax collections.
A study released last month by Pew Charitable Trusts showed that those stimulus funds caused personal income in West Virginia to jump 14.4% in the second quarter of 2020 — the sixth-highest spike in the U.S., and well above the national average of a 9.7% increase.
“The spike in government assistance was the main reason that the sum of residents’ personal income soared in every state in the second quarter of 2020, despite a record-setting drop in U.S. economic activity due to the pandemic,” the Pew report noted.
The Institute on Taxation and Economy Policy found that $1,200 federal stimulus checks sent out early in the pandemic amounted to a $1.87 billion cash infusion into the state economy, while the West Virginia Center for Budget and Policy concluded the $600-per-week of supplemental unemployment benefits under the federal CARES Act brought another $426 million into the state.
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