×

Talking About a Taxing Situation

It sure was interesting to be at the Greenbrier Resort last week for the West Virginia Chamber of Commerce 86th Annual Meeting and Business Summit, especially since Gov. Jim Justice dropped a bomb of a press release on lawmakers during the event.

I won’t rehash all the drama. In short, Justice called on the West Virginia Senate Thursday night to stop sitting on his bill to cut personal income tax rates by a combined 10%, called on the public to start calling senators, and accused them again of supporting large corporate interests by preferring to push for eliminating six categories of tangible personal property taxes.

During his COVID-19 briefing Friday, Justice doubled down on his complaints about the near majority of the Senate Republican caucus (state Sen. Robert Karnes, R-Randolph, is a vocal supporter of the Governor’s plan; Senate President Craig Blair, R-Berkeley, said Friday that at least 18 Republican senators prefer his plan over the governor’s, meaning five Republicans haven’t signed on).

On my way out of The Greenbrier Resort Thursday night to go back to my hotel (no, I did not stay at The Greenbrier), I bumped into Justice and first lady Cathy Justice as they were driving in a golf cart to his resort. I asked him if he was going to throw more bombs at his Friday virtual briefing with reporters.

“I wouldn’t do that,” the governor said with a big grin on his face.

When Justice’s press release went out early Thursday evening, the West Virginia Chamber PAC was having a private reception for donors and lawmakers. If only to be a fly on the wall when that release hit inboxes.

I’ve written a lot about the back and forth on tax reform in this state. As I’ve said frequently to people who ask my thoughts, Republicans are the dog that caught the tire. They have the votes they need to pass most any kind of tax reform they want. If voters approve Amendment 2 in November, they will finally have the constitutional authority to reduce or eliminate six specific categories of tangible personal property taxes. But they simply can’t agree on the best way to go about giving you back your tax dollars.

As Senate Finance Committee Chairman Eric Tarr, R-Putnam, told me Friday morning, “it’s a good problem to have.” That’s true to some extent. Finally, these questions of public policy are being debated, often within the pages of my articles. You, as the public, benefit for that debate.

Justice wants his 10% personal income tax cut. He truly believes it will help put money back into the pockets of all West Virginians. He believes the Senate Republicans’ core plan of eliminating tangible personal property taxes will mostly help big businesses and out-of-state corporations.

Senate Republicans are not against cutting or phasing out the personal income tax, but they believe eliminating tangible personal property taxes will send the state’s economy into warp speed and create the environment to phasing out the personal income tax. They think a 10% cut is simply too small.

Of note: The governor is very much against the Senate’s tangible personal property tax plan, but I’ve not heard him directly come out against Amendment 2. I know that Justice has been a supporter in the past of the Legislature being able to have the authority to reduce or eliminate those taxes. He supported a similar amendment in 2018.

Blair recently had hip replacement surgery which still causes him pain. The governor’s statements last week added to that pain. So did the announcement that state Sen. Patricia Rucker, R-Jefferson, would challenge him for Senate President later this year when the Senate Republican caucus meets to either keep Blair as the man with the gavel or someone else.

Talking with lawmakers on background last week, many don’t see her as a credible threat to Blair. But Rucker is another example of a legislative leader receiving a challenge from their political right. Blair is a pretty conservative guy, so one must really be to his right in order to make such a challenge.

Rucker is part of a small group of very conservative senators, including Karnes; Mike Azinger, R-Wood; Rollan Roberts, R-Raleigh; Patrick Martin, R-Lewis; and maybe Randy Smith, R-Tucker. I don’t know that all of them would vote for Rucker as Senate president, but many would, I suspect.

But there are also a number of moderate Republicans (before the Trump times these would have been considered normal conservatives) who stand a real chance of winning their elections in November and helping secure additional seats for the Republican caucus. I suspect that will help render a Rucker challenge moot. But we shall see.

Speaking of efforts to overthrow a legislative leadership, the West Virginia Chamber of Commerce gave House Speaker Roger Hanshaw, R-Clay, the first ever Chairman’s Leadership Award in recognition of his leadership. I can’t help thinking that was the chamber’s way of making it clear they prefer Hanshaw to Del. Brandon Steele, R-Raleigh, who is challenging Hanshaw for House speaker.

Starting at $2.99/week.

Subscribe Today