Legislature 2008: Taxes

By sizable margins, lawmakers have been advancing an array of tax cuts this session that would primarily benefit business. They include drops in corporate net income and inventory property taxes, and a phaseout of the business franchise tax.

But The Associated Press' Tom Breen hears from one group that estimates this legislation "could sap an additional $531 million from state coffers over the next 11 years."

The West Virginia Center on Budget and Policy warns "the new measures could force the state to cut services or raise other taxes to make up for the shortfall," Breen reports.

Advocates argue that tax cuts attract new businesses while allowing ones already present to expand, increasing the number of taxpayers and their revenues.

To test that belief, lawmakers may require tax officials to report periodically to the Legislature on the cuts' effects following passage.

Update: The Charleston Gazette also has a story, and a link to the center's report.