West Virginia Governor Jim Justice announced on Monday that state revenue collections exceeded expectations at the end of the fiscal year, triggering a potential additional reduction in the state income tax. The surplus of $826 million above estimates could lead to a 3 to 4% income tax cut starting next January. Further tax reductions of up to 10% are possible, prompting the governor to call lawmakers back for a special session in August or September to consider an additional 5% cut.
Governor Justice also plans to revive a proposal for a tax credit to make child care more affordable for families, which was previously unsuccessful during the regular legislative session. With federal subsidies for child care programs cut off last year, West Virginia has seen closures of several child care centers. The governor hopes that these measures will promote population growth in the state, which has experienced a decline in residents over the past decade.
The potential income tax cuts and child care proposals are part of Governor Justice’s efforts to spur economic growth in West Virginia, a state that has been heavily impacted by the decline of the coal industry. The governor emphasized the importance of attracting young workers to the state to address labor shortages and boost the economy.
The proposal for further income tax cuts and the renewed focus on child care affordability are expected to be key topics of discussion during the upcoming special legislative session. Governor Justice is hopeful that these measures will help address some of the challenges facing West Virginia and encourage population growth in the state.
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