The last time Manchin brought a tax issue before the Legislature, the ruling party voted to prevent Republican House members from offering amendments to the governor's 1 percent reduction food tax bill. One can learn from that, and understand that the "Tax Reform" bill will be an up or down vote, take it or leave it with no input from legislators. The governor made his own tax policy last year, when he used an executive order to freeze the gas tax instead of allowing the Legislature to vote on it as required by the West Virginia Constitution.
The governor has stated that he wants to lower business taxes. So do I. I have introduced legislation to reduce those taxes since I was elected four years ago. However, I believe that you do not need a corresponding tax increase in order to cut taxes on business. The capital gains tax cuts by President Bush at the federal level have resulted in revenues to the federal government far exceeding the amount of the cut. That is because there was an increase in business investment and job creation resulting from lower taxes.
The governor's administration and surrogates for the Tax Modernization Project have repeatedly claimed that property taxes in West Virginia are low, leading one to believe that they need to be increased in order to cut business taxes. If this "Tax Reform" plan was not a plan to raise taxes, then the governor would try to use an executive order again so he wouldn't have to share the glory.
A statewide re-evaluation of property taxes requires an act by the Legislature. I believe there are plenty of folks who may lose their property to taxes when the re-evaluation occurs. Therefore you really need to play close attention to the governor's plan for tax reform and wonder why he wants a lame duck Legislature to pass his tax reform.
Another way to increase taxes on property would be to raise the cap on assessments. In order to assess taxes on property above 60 percent of property value requires an act of the Legislature as well. Could it be that the lame duck Legislature's role in this is to share and absorb the wrath of the taxpayer's pain from tax increases? Who can say which legislators will be defeated in November before they get to vote on "tax reform," but the state of the House leadership is known. The Speaker and minority leader are retiring and the majority leader lost reelection in the primary.
There has been much said by Manchin and his administration about changing the constitutional amendment of 1932, which allowed a farm exemption. That amendment to the state Constitution did much more than limit taxes on farmed land. It provided for a graduated income tax system, an exemption from taxes for low-income earnings, and limited the rate of taxation on property. Perhaps the talk of amending Article 10 is less about eliminating the farmland exemption and more about lifting the cap on the rate of taxation on property. Hold on to your wallets, and maybe your home.
Don't let this "tax reform" happen after it is too late to ask questions and before you can hold officials accountable or you might be surprised by what happens ... to you.
Delegate Cindy Frich R-Monongalia