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WV Tax Cut Tightrope Race Heads to House

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 By Deborah Smith/Jamie Folsom, Contact
March 8, 2007

Unexpected business and corporate tax cuts approved by the West Virginia Senate are expected to generate a strong debate this week in the House. Opponents predict the cuts will have a $200-million-per-year negative impact for West Virginia.

Rick Wilson, with the West Virginia Economic Justice Project, says tax cuts lead to fewer services, such as education or health programs, to make up for the lost revenue.

"I think it's alright to pursue tax reform and to look at corporate taxes, but we need to do it in a rational, deliberate, and cautious way, studying the consequences."

Wilson says West Virginia recently recovered from a budget crisis, and lowering revenue through tax cuts needs a conservative approach on the side of caution.

"If we drastically cut it right now, it's going to cause a lot of problems down the line."

Supporters argue tax reform and tax cuts would provide increased economic vitality to the state.

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