Fiscally Responsible Plan To Eliminate Food Tax Benefits All West Virginians
Fiscally Responsible Plan To Eliminate Food Tax Benefits All West Virginians
by Governor Joe Manchin
This week, working together with members of the West Virginia Legislature, we took another significant step to bring financial relief to the citizens of our state and begin removing another economic obstacle that has hindered our progress. With a 98-0 vote in the House of Delegates and a 32-1 vote in the Senate, the Legislature approved a one percent reduction in the state sales tax on groceries from six cents on the dollar to five cents, effective Jan. 1, 2006.
I couldn't be more proud of a group of West Virginians than I am of the members of our legislature for their actions earlier this week - especially my fellow Democrats. Under intense scrutiny by special interests that took an unreasonable "all or nothing" approach on the issue, they stood tall to take the responsible step we needed to continue to move West Virginia forward. By doing so, they made it clear that they would not be bullied, could not be intimidated and that this state is not for sale.
Working together during these past nine months, and even crossing partisan lines at times, we have truly made great progress. While as West Virginians we can have differing views and disagreements on occasion, it is important that we band together to continue working to take the sensible and necessary steps that will build a brighter economic future for our state.
During my administration, we will continue to reduce our state food tax by at least one percent annually if we continue to meet the following economic benchmarks: a four percent growth in the economy; a 10 percent reserve account that maintains our bond rating; and, continued payments to reduce the state's outstanding pension debt. At a minimum, if the state experiences growth of at least 3.2 percent, then .5 percent will be able to be taken off.
This week's one percent reduction is a starting point, and we will continue to reduce the rate of this tax in a fiscally responsible manner as the state's economy grows. We are also not going to allow West Virginia to continue to be one of the unhealthiest states in the nation. We are going to look at the basic definitions of what food items are taxed and what items should not be taxed; what items are nutritional or not nutritional; and, how we should provide incentives to encourage people to buy healthy foods instead of non-healthy foods.
Working with the Democratic leadership in the Legislature, I have asked for the other side of the aisle to move with us in a responsible manner on these issues. I am also asking everyone to stop the grandstanding and take the politics out of the debate. The future is too important, and our children and grandchildren are too important, to not come together to create a better West Virginia. We are not going to allow this state to go further into debt and leave our children and grandchildren with the bill. Steady leadership and sound fiscal decisions will ensure that day is over in West Virginia
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