Wednesday, January 19, 2011
House And Senate Leaders Consider Food Tax
WEST VIRGINIA....
Acting Governor Earl Ray Tomblin wants to whack another penny off the food tax, but finance leaders in both the House and Senate questioned Wednesday whether state government could afford that. Tomblin's request would reduce the sales tax on groceries from 3 percent to 2 percent, to become effective next January 1st. Officials estimate the cut would save consumers $26 million annually, but House Finance Chairman Harry Keith White, D-Mingo, cited the corresponding general revenue loss. White referrrd to another Tomblin proposal that would provide one-time payments to teachers, school workers and state workers totaling $47.5 million. Administration officials have said the state has enough revenues both to fund those payments and afford the tax cut. White says lawmakers may seek a permanent raise for the public employees, and he considers that a higher priority than reducing the food tax.
Acting Governor Earl Ray Tomblin wants to whack another penny off the food tax, but finance leaders in both the House and Senate questioned Wednesday whether state government could afford that. Tomblin's request would reduce the sales tax on groceries from 3 percent to 2 percent, to become effective next January 1st. Officials estimate the cut would save consumers $26 million annually, but House Finance Chairman Harry Keith White, D-Mingo, cited the corresponding general revenue loss. White referrrd to another Tomblin proposal that would provide one-time payments to teachers, school workers and state workers totaling $47.5 million. Administration officials have said the state has enough revenues both to fund those payments and afford the tax cut. White says lawmakers may seek a permanent raise for the public employees, and he considers that a higher priority than reducing the food tax.
# posted by Homer Owens @ 10:10 PM 
