CHARLESTON, W.Va. - Critics of a proposal rushing through the House of Delegates say it could blow a hole in West Virginia's state budget by using one-time money to pay for permanent tax cuts that mostly help those who are well off.

House Bill 3137 would create a fund where new money, including out-of-state online sales taxes, would go. Then, each time that fund reached a certain level, it would trigger compounding cuts in state income taxes.

Ted Boettner, executive director of the West Virginia Center on Budget and Policy, said some lawmakers may not realize they could end up using one-time money to offset tax cuts that continue for years and build on top of each other.

"This bill was pushed out of the Finance Committee without a fiscal note, without any understanding of what its impact would be on tax revenues or the state budget," he said. "It's a poorly designed tax cut that will not only lead to large revenue losses but also further exacerbate income inequality in West Virginia."

Supporters have said now that the state can collect the online sales taxes, it can afford to cut income taxes. However, Boettner said progressive income taxes hit the rich harder, while sales taxes take a larger portion of lower-income families.

Since the cuts as outlined in the bill build over time, Boettner said, they eventually could dent the state budget by from $200 million to as much as $1 billion a year. He said the new revenue might offset one year's tax cut, "but since the tax holes continue year to year, the proposal would eventually lead to large compounding revenue losses and budget holes that would likely require more cuts to schools, colleges and other budget priorities, or tax increases likely to fall on working families."

HB 3137 originated in the House Finance Committee a week ago. It did not go through a second committee, but could reach final passage in the House today.

More information from the center is online at wvpolicy.org, and the text of HB 3137 is at wvlegislature.gov.


get more stories like this via email

In an effort to make up for President Donald Trump moving his inauguration indoors to the Capitol Rotunda, leaving many ticket holders to watch from an overflow arena, Rep. Darren Soto, D-Fla., offered his constituents a unique gesture: a guided tour of the Capitol for those affected by the change in venue.

Just after leading the tour, Soto sat in his office and reacted to breaking news of Trump's sweeping pardons for more than 1,500 individuals charged in connection with the Jan. 6 Capitol riot.

"It is extremely disappointing and sets the wrong tone for his new incoming administration," Soto contended. "When you side with criminals over police officers on the first day, it sends the wrong message. I was in the chamber on January 6. The Capitol police saved my life."

The vast majority of Jan. 6 cases have already been resolved in court, resulting in guilty pleas or trial convictions. However, the final section of Trump's proclamation ordered the dismissal of approximately 300 pending cases. Among those pardoned was Robert Palmer, a Florida man who assaulted police officers with a fire extinguisher, a wooden plank and a pole.

Trump's proclamation commuted the sentences of 14 far-right extremists, including members of the Proud Boys and Oath Keepers. Among them was Kelly Meggs, leader of the Oath Keepers' Florida chapter, who had been sentenced to a decade in prison for seditious conspiracy. While Soto acknowledged leniency for nonviolent offenders who have served significant time, he emphasized others must fully serve their sentences.

"Those who violently attacked police officers should be forced to serve their whole sentence just like any other American who did such a heinous crime would expect," Soto argued.

Michael Fanone is a former D.C. police officer who was attacked by people now pardoned by Trump. He told CNN he feels deeply betrayed by the decision.


get more stories like this via email

Mississippi is embracing the future of artificial intelligence with Gov. Tate Reeves' executive order establishing a framework for its responsible use across state agencies.

The order tasks the Department of Information Technology Services with inventorying AI technologies and working with stakeholders to develop ethical policies. While seen as a step forward, it raises questions about implementation and oversight.

Kollin Napier, director of the Mississippi Artificial Intelligence Network, said his organization is helping to boost the state's role in AI education and innovation.

"We're already leading on that forefront and with involvement from the governor, with involvement from ITS and bringing even more people into the fold," Napier explained. "We're just continuing that momentum and even amplifying it on a greater scale."

Mississippi joins other states in adopting AI policies following previous failed legislative efforts, including Senate Bill 2062, which aimed to create a task force to explore AI's role in government. Attempts to regulate AI in political advertising also stalled last year, raising concerns about the pace of progress.

Napier emphasizes AI is hardly a new concept but it is now taking center stage and he encourages viewing it as an opportunity for job creation and economic growth, rather than a threat to employment.

"I like to say AI, in and of itself, will not displace you, but the people who are taking the time to learn and integrate that into their day-to-day lives -- their professional lives -- can and will take your job," Napier emphasized. "Because as we're seeing, that's where the future going."

Reeves' executive order has ignited discussions about balancing innovation with regulation, as advocates express hope the initiative will drive economic growth while mitigating potential risks.



get more stories like this via email

Gov. Brian Kemp delivered his 2025 State of the State address Thursday, emphasizing tax cuts and tort reform as key priorities for Georgia.

Kemp also highlighted the state's resilience following Hurricane Helene and praised its economic strength. He is convinced one of the best ways to continue growing Georgia's economy is by "putting more money in the pockets of Georgians." He announced plans to reduce the state income tax rate by 20 basis points, bringing it down to 5.19%.

"Because at the end of the day, that's your money, not the government's," Kemp stated. "And here in Georgia, we believe you should keep more of it."

The governor said his proposed tax cut would save residents about $7.5 billion over the next decade. During the last legislative session, the state income tax rate was already reduced to 5.39%, a total decrease of 36 basis points since 2022.

Another major priority outlined by Kemp is tort reform, which are changes to the judicial system to discourage what some see as "frivolous" lawsuits or large settlements. He noted while Georgia has maintained its title as the "best state to do business," many industries struggle with high business insurance premiums and the cost of legal actions. Kemp argued the challenges hinder their ability to operate, hire employees and expand. He mentioned the effects on health care around the state.

"We heard firsthand the challenges our legal environment poses to critical services, our health care workforce and the ability for hospitals and clinics to operate," Kemp outlined.

Kemp also addressed expanding funding for law enforcement units to prosecute gangs and human traffickers, and to increase access to health care. And he promoted state programs like Georgia Access and Georgia Pathways as alternatives to traditional Medicaid expansion, saying they provide better health coverage for more than 200,000 Georgians.


get more stories like this via email