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Tax Cuts Should Come Cautiously

Gov. Patrick Morrisey is right to note West Virginians are “feeling the impact of inflation,” as he pointed out Monday.

“People know that groceries cost more. Gas has (cost) more. Utilities have (cost) more,” he said.

It is easy, then, to understand why he wants to find a way to do something about that by speeding up the state’s path to already approved cuts, and is proposing reducing the state’s personal income tax rates by between 5% and 10%.

It’s exciting talk, but once lawmakers dig into the idea, they will likely have to pump the brakes. Revenue from the personal income tax makes up the majority of tax collections for the general revenue fund.

When House Bill 2526 passed in 2023, personal income tax rates were reduced significantly, and it included a formula that triggers additional income tax rate cuts if certain markers are met. In 2024, it was amended to require the secretary of the Department of Revenue to determine each August whether a personal income tax cut has been triggered.

In August 2025, the Revenue Department determined the state did NOT hit the personal income tax trigger for tax year 2027.

Though that should have injected a healthy dose of caution into the conversation, Morrisey says he doesn’t want to wait to see whether tax collections and the economy meet markers that would trigger a future cut.

“At the end of the day, I think we have to start with the premise that this is the people’s money,” Morrisey said. “And the more we can deliver back to them, the better off we are.”

He’s right, though it is important to remember the idea is to RESPONSIBLY let taxpayers keep as much of their hard-earned money as possible. That’s even more important given Morrisey’s assertion that the general revenue budget he will present to lawmakers Jan. 14 will not reduce services to pay for the cut.

Lawmakers already have a plan for reducing the personal income tax WHEN CONDITIONS ALLOW. Those conditions were not met just this past year.

Again, one can understand Morrisey’s sense of urgency. But the prudent step may be for him to work with lawmakers during the upcoming legislative session to expand and diversify the economy; increase revenue streams; continue to weed out all the fraud, waste, abuse and excess boards and commissions we were supposed to be rid of by now; and work to improve indicators that would help the state meet the trigger already in place for an additional cut.

It won’t be easy for Morrisey to be patient when he can see Mountain State residents could use some financial good news. He’s going to have to be.

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