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Gov. Jim Justice’s request to eliminate the personal income tax on Social Security would be phased out over three years under a bill introduced by the House Finance Committee on Friday.
Committee leaders said they also want to provide tax breaks to seniors while being cautious about the state budget.
“It is generally our practice and prudent practice to phase in tax cuts,” House Finance Chairman Vernon Criss (R-Wood) said Friday afternoon in response to a lead question about the multi-year approach. Stated.
The estimated economic impact of completely eliminating income taxes on Social Security benefits would be just over $37 million. Chris noted that the state is still monitoring the impact of other recent tax cuts, such as the large personal income tax cut and the auto personal property tax rebate. He also pointed to the possibility of new economic-driven personal income tax cuts.
“I took a cautious approach with a gradual introduction,” Chris said.
Delegate Daniel Linville (R-Cabell) said he supports the bill but believes full Social Security relief could become a reality now.
“We hope and believe that we have the ability, every ability, to do that right now,” Linville said.
The social security plan is one of three tax reduction measures proposed by the governor in his State of the State address. One is the state child and dependent care tax credit. The other is expanding homeownership tax breaks for seniors. The administration estimates the three tax cuts will total about $50 million.
The bill introduced by delegates on Friday would build on a 2019 bill signed by the governor that exempts Social Security income from personal income taxes for most West Virginians, especially low-income residents. . It was also a three-year phase-in for him.
The proposal would exempt those in higher brackets from taxing their Social Security benefits. This bill was introduced in the House of Representatives as HB 4880.
Judicial authorities say 50,000 elderly households will be affected.
“I like a measured approach and I like supporting our seniors,” said Delegate Clay Riley (R-Harrison).
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