| About the Issue
The West Virginia Senate has recently passed SB 680 which would reduce corporate income business taxes and cost the state over $70 million per year when fully enacted and cost the State approximately $430 million from FY 2010 to FY 2017.
There seems to be little or no consideration for how the lost revenue can be regained.
What will this mean to working West Virginians?
Here's a simple rule of thumb: in any given year, around half of state general funds goes to K-12 education and about 10 percent goes to higher education. Another 20 percent goes to providing human services such as the Children's Health Insurance Program, Medicaid. That leaves 20 percent for things like roads, infrastructure, public safety, parks and recreation, and everything else.
In other words, this means:
losing millions in revenue for schools at a time when education has never been more important and when state teachers are paid sub-standard salaries;
losing revenue for higher education in a state that ranks at the bottom in educational attainment while the costs of education for students and parents continues to rise;
losing millions for human resources, which will likely mean further cuts in Medicaid for seniors and others, limitation of CHIP, and further reductions in services;
losing millions that could improve the state's infrastructure and safety, and ensure a living wage to public employees.
In late 2006, Gov. Manchin issued a call to reform state taxes. A broad coalition of groups including the WV AFL-CIO supported this because it combined a cautious approach to reform with targeted help for low income West Virginians and reductions in business and other taxes.
These changes were approved during a special session of the legislature in Nov. 2006. It was understood that further reforms in state taxes were needed, but these changes need to be made carefully and with full consideration of the state's long term needs. Already, the state faces major financial liabilities and is heading towards a structural deficit.
Businesses will gain little if tax cuts come at the cost of education, infrastructure and the long term well being of West Virginians. We need a responsible approach to state taxes and revenues, not careless corporate tax cuts with no plan for the future.
Act Now!
Please contact the Governor and members of the WV House of Delegates and urge them to reject the irresponsible corporate tax cuts included in SB 680. Ask them to adopt a responsible approach to state taxes and revenues, not careless corporate tax cuts with no plan for the future.
BY EMAIL: Take action through the Legislative Action Center on Children & Families to send a message to the Governor and your State Delegates asking them to reject irresponsible tax cuts, which come at the cost of education, infrastructure and the long term well being of West Virginians.
BY PHONE: Call 1-877-565-3447 to leave a message for your State Delegates asking them to VOTE NO on SB 680. |
