Today is July 1, the start of a new fiscal year for many states, including ours. And it’s a reminder that West Virginia cannot be complacent when it comes to making itself an attractive place in which to do business.
As Daily Mail Capitol Bureau Chief Dave Boucher reports today, there are no significant tax changes to the state’s structure. But some other states are changing their tax structures and tax rates today.
It goes to show that the competition among states to create an environment that brings quality jobs from outside and encourages growth from within is never ending.
“Indiana and Rhode Island businesses will see a drop in their corporate tax rates on July 1,” wrote the Pew Charitable Trusts. “Maryland is beefing up tax credits related to cybersecurity, biotechnology and research and development to encourage companies to relocate to the state.”
While a few fees and certain taxes will go up, the trend has been to use corporate tax cuts to get the economy moving, said Brian Sigritz of the National Association of State Budget Officers, in the Pew report.
Sigritz said 2010 saw a lot of states increasing fees and taxes to bring revenues in after the recession hit in 2008. That trend has now reversed. “We’ve definitely seen a movement to try to reduce taxes and fees and encourage job growth.”
West Virginia has seen improvements in its business image of late.
West Virginia still has plenty of room for improvement. “The tax code is one of the few things businesses care about when they’re looking for new places to invest,” Tax Foundation economist Scott Drenkard told Pew.
West Virginia policymakers must remain ever vigilant to get ahead and stay ahead of the competition for the state to be consistently attractive to job creators.
— Charleston (W.Va.) Daily Mail