West Virginia needs a tax policy that gives YOU more control of your hard-earned wages. A comprehensive tax system is one of the most fundamentally necessary aspects of the permanent relationship among a state’s government, its citizens, and its business community.
That system must:
1. Promote – not inhibit – effective operation of the free enterprise system – including the reward of hard work by individuals
2. Be effective in its generation of adequate revenues
3. Provide simplicity and ease of both compliance for taxpayers and of administration for the government
4. Avoid the regressive effect of making more costly the purchases of life’s essentials by low-income citizens
Despite many past attempts to correct it, West Virginia’s current system continues to fall short of these objectives. A new effort at comprehensive reform of that system is one of the most compelling public policy initiatives we should undertake.
Specific reforms of the tax system which deserve consideration:
1. A phase-out of income taxes on individuals and businesses
2. Reductions (not uncompetitive increases) in the rates of the consumption taxes, with exemptions limited to those avoiding both added cost of the purchases of life necessities by low-income individuals and uncompetitive disruption of free market functions
3. Replacing the tax on ALL tangible personal property with alternative sources of revenue for local governments