Saturday, December 4, 2021


A new report shows, despite getting billions under the American Rescue Plan, many airlines continue to disrupt travelers' plans with cancellations, and Congress averts a government shutdown for now.


U.S. House passes a stopgap government funding bill; the Omicron variant is found in Minnesota; Biden administration revives the "Remain in Mexico" policy; and the Bidens light the National Christmas Tree.


Seniors in non-urban areas struggle with hunger disproportionately; rural communities make a push for federal money; and Planned Parenthood takes a case to the Montana Supreme Court.

Analysis: Corporate & Business Tax Cuts Putting WV in a Hole


Monday, March 3, 2014   

CHARLESTON, W.Va. - State lawmakers are struggling to close a big budget hole, but a close look shows the legislature dug that pit with business tax cuts over the last eight years. Sean O'Leary with the West Virginia Center on Budget & Policy pointed out that state spending has been basically flat for some time, but the tax cuts made since 2006 are part of what is causing a budget gap of more than $200 million next year.

"We're collecting less business tax revenue this year than we did nearly 20 years ago, even before you adjust that for inflation," O'Leary said.

Revenue lost to cuts in the business franchise tax and the corporate income tax would just about equal next year's shortfall, he noted.

O'Leary said the state created a structural problem in the tax and revenue system over the last eight years with big, permanent rate reductions and phase-outs that were unaffordable.

"It's about $425 million for fiscal year 2015," he said, "so that would be balancing the budget, plus some. But it was given away in tax cuts."

Supporters of the cuts said they would spark economic activity, because more businesses would locate or expand here. There is no evidence to support that, O'Leary said, adding that taxes are only a tiny factor in a company's decision - a much smaller part than consumer demand, the cost and quality of labor, or the access to markets or raw materials.

"There's no natural gas industry coming into the state because we lowered the business franchise tax. They're coming into the state because we have natural gas," he pointed out.

The governor has asked to transfer more than $80 million from the state's rainy-day fund, and suggested cuts of another $35 million in items such as race-track subsidies. However, O'Leary said, these are one-time solutions to a permanent problem: the amount of revenue the state takes in.

"If we have to take $80 million out of the rainy-day fund this year, and we expect no revenue growth next year, we're just going to have to do it again. Until we address the structural revenue problem in the state budget, one-time fixes aren't gonna cut it," he said.

The center's latest budget report is available at

get more stories like this via email

Indigenous people in Peru demonstrate against oil drilling in 2013. (Amazon Watch)


LOS ANGELES -- California-based facilities are refining half of all the oil drilled in the Amazon rain forests, according to a new report by the …


ALBUQUERQUE, N.M. -- People who live on the Navajo Nation near the San Juan Basin are closely following work by the Environmental Protection Agency (…

Social Issues

PHOENIX -- A new report shows, despite getting billions of dollars from the federal government under the American Rescue Plan, many airlines continue …

From left, Andrea Comer, committee chairwoman, Connecticut Social Equity Council, and Carlton Highsmith, Joseph Carbone and Fred McKinney announce the Alliance for Cannabis Equity on Tuesday in Hamden, Conn. (The Narrative Project)

Social Issues

NEW HAVEN, Conn. -- Connecticut is among several states working on what its new recreational marijuana industry will look like, and a new coalition …

Social Issues

PRAIRIE DU SAC, Wis. -- Broadband gaps affect many facets of life, including education. The new federal infrastructure plan includes money to expand …

Hastings-on-Hudson is currently the highest-ranking town in New York State's Climate Smart Communities program. (Adobe Stock)


HASTINGS-ON-HUDSON, N.Y. -- One of the major takeaways from last month's big climate conference in Scotland is, all levels of government need to …

Social Issues

ALBANY, N.Y. -- New York State United Teachers (NYSUT) has released a new report this week, with recommendations from educators about how best to …

Social Issues

BALTIMORE, Md. -- Maryland civil rights groups are proposing a lawsuit against Baltimore County if it adopts its current redistricting plan, claiming …


Phone: 303.448.9105 Toll Free: 888.891.9416 Fax: 208.247.1830 Your trusted member- and audience-supported news source since 1996 Copyright 2021