WASHINGTON (WV News) — Sen. Shelley Moore Capito, R-W.Va., is in full support of the tax reform package that’s poised to pass the West Virginia Legislature.
House Bill 2526, the strike-and-insert bill that unanimously passed the Senate on Saturday, is currently before the House of Delegates for its members to confer with changes.
“The governor’s office and the lawmakers, they have studied this very deeply,” Capito said Thursday during her weekly media briefing. “I think that the compromise the governor reached with the Senate is a great compromise. Any time we’re putting more money back into taxpayer pockets is a good thing.”
HB 2526 represents a blending of the plan backed by Gov. Jim Justice and the plan crafted by the Senate Finance Committee.
“I am extremely supportive of what they are doing, and I think they’ve gone about it in a very studied manner,” Capito said.
The bill includes a 21.25% personal income tax reduction; a homestead tax credit for service-disabled military veterans; a 50% refundable credit for personal property taxes paid on vehicles; and a 50% refundable credit for small businesses on personal or corporate net tax income for personal property.
It also includes triggers for further PIT reductions, limited to 10% per year, that would go into effect if and when the state meets certain general revenue collection benchmarks.
Sen. Joe Manchin, D-W.Va., stopped by the state Capitol in Charleston last week and urged lawmakers to exercise caution when considering tax reform.
While the state is currently in a favorable finance position, it is due in large part to the billions of dollars from the federal government the state has received in recent years, Manchin said.
“I won’t be cautioning the Legislature,” Capito said. “I think they’re doing a great job on that one.”
During an appearance on WV News’ webcast program West Virginia Legislature This Week on Wednesday, Gov. Jim Justice called on House members to approve the Senate’s bill.
“The House has been a leader in many, many, many ways. And they need to complete their job and have ample time to do so,” he said.
“And we’re going to be super respectful of that. But hopefully, if it comes out the way it is right here today, we got 21.25%.”