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Justice defends income tax cut proposal ahead of special session; COVID numbers continue climbing as BA.5 moves in

MORGANTOWN — Gov. Jim Justice fielded more questions about his income tax reduction proposal during his Friday briefing. He and his team also continued their COVID warnings as BA.5 keeps spreading.

On taxes, Justice took a question about a West Virginia Center on Budget & Policy critique of his plan to reduce personal income taxes by an aggregate 10%.

WVCBP said that Justice is relying on a budget surplus fueled in part by federal money, high energy prices and lowered revenue estimates.

WVCPB also criticized the plan based on looking at absolute dollars: West Virginians with incomes of $35,000 to $55,000, would receive an average tax cut of just $120, compared to an average tax cut of $3,171 for the wealthiest 1% with incomes over $443,000.

Justice said he tried to make it fair and equitable across the spectrum. “You’ve got to look at the percentages.” Those making $10,000 or less would see a cut of 33% while those making $500,000 or more would see a cut of 8%.

The higher earners pay more in taxes, he said, and they’re the job creators, which has to be taken into account.

Justice also acknowledged that he and Senate President Craig Blair aren’t on the same page: Blair wants to work on cutting personal property taxes on vehicles and on business inventory, equipment and machinery, if voters pass Amendment 2 in November.

Justice said Amendment 2 would take a long time to get money into people’s pockets while his proposal gives immediate relief. “If you want people to come to West Virginia, if you want real growth within our state,” his plan gets there quicker. And no business has ever told him they’d come if we got rid of the property tax.

“It is a philosophy difference,” he said. “This is a silly place at times.” Egos get in the way.

Jutice also said that eliminating those property taxes would build the base budget because the state would have to make up the losses to the local governments. “That’s going to jump to a gigantic level.” And possibly put the budget in peril when hard times hit.

“This is a baby step,” he said.

COVID news

Case numbers continue their steady climb — from 2,745 active cases at Tuesday’s briefing to 3,358 on Friday, with 992 new cases on Friday.

Hospital numbers are growing, too. On Tuesday it was 309 hospitalized, 35 in ICUs and 11 on ventilators. On Friday it was 325 hospitalized, 44 in ICUs and 13 on ventilators.

Justice acknowledged President Biden’s COVID case. Biden is 79, Justice observed, but his symptoms are little more than a cold. “He’s gotten all of his shots. … Without having all of those shots it could be really, really, really bad.”

COVID-19 czar Dr. Clay Marsh also commented on Biden’s case, and the importance of getting vaccines and boosters.

He said that nationally, for the 50-64 age group, only 50% have a first booster and only 9% a second booster. “That is way too low.”

The U.S. is seeing 500 deaths a day as the BA.5 omicron variant spreads. And West Virginia typically runs several weeks behind the rest of the nation for disease trends. “We can anticipate that BA.5 will come and have its full strength felt in West Virginia in the next several weeks.”

Joint Interagency Task Force Director Gen. James Hoyer said they will be able to order the new Novavax vaccine starting Monday, and will have figures on how much supply the state will receive as they work through the ordering process.

TWEET David Beard @dbeardtdp

EMAIL dbeard@dominionpost.com