Listen to “No Income Tax at All, Listening to a Pro, and the Hurdle to be Governor” on Spreaker.
Friday commentaries — even when posted on Thursday night for the early crowd — sometimes offer a chance to opine on multiple issues at a time. That’s especially true during the legislative session. A fan of presenting things in threes, here you go…
Senate Bill 680
Much discussion has centered on whether the state can afford another five-percent personal income tax cut. Governor Morrisey has publicly pushed for a 10-percent cut while only budgeting for five.
Senators Rose, Chapman and Rucker want to go further, faster. Senate Bill 680 would fully eliminate the personal income tax and the corporate net income tax.
This is where principle meets fiscal reality. Philosophically, taxing labor strikes as punitive — a taking right off the top that may disincentivize work. But in fiscal 2025, the personal income tax generated roughly $2.13 billion for West Virginia. That out of a little more than $5 billion in general revenue.
Businesses appear to pay a lot in taxes on paper, but in practice those taxes become costs passed on to consumers. A tax on business is a tax on the consumer. Every business model ultimately looks at post-tax return in making capital deployment decisions. The corporate net income tax brought in about $376 million in fiscal 2025.
The issue with SB 680 is that it repeals taxes without replacing the revenue. Perhaps unpopular to say, but some level of taxation is necessary. The most likely alternatives would be consumption or luxury taxes. Both more easily controlled by taxpayers and both more broadly assessed.
Pulling $2.5 billion in revenue without a well-articulated, systematic plan to cut $2.5 billion in services — or replace it — is financially imprudent. It’s just more of the latest strain of populist politics built on bold promises and thin plans, all setting up the familiar campaign refrain: “I tried, they stopped me… send me back and we’ll try again.”
If a comprehensive plan emerges to fully eliminate these taxes responsibly, count me among those ready for the debate.
TEAM WV / JobsOhio Model
Marshall University visited the Capitol this week. Brad Smith, as always, made time for a Talkline interview. His leadership at Intuit is well documented. Less known outside business circles is his work with Eric Ries and The Lean Startup — a framework that reshaped Intuit and many other companies. It’s worth the read and provides insight into his business journey.
Smith’s record — he likes to call himself Brad from Kenova – commands respect. When asked about a JobsOhio-style model for West Virginia, his enthusiasm was clear. He’s supportive and working with Charleston to bring it to fruition.
So here’s the question: when you have a former Fortune 300 CEO, a board member at Amazon and JPMorgan, and a fully vested West Virginian pointing you in the right direction… why aren’t we heeding advice more closely?
At Day 23 of the session (as of this writing), why hasn’t a bill advanced? Why isn’t the governor championing it without reservation?
Yes, Speaker Hanshaw and others are engaged. But this feels like a no-brainer: an experienced voice offering insight into what corporate America looks for, and the legislature seems too casual about seizing the opportunity. All legislators should be all in on the initiative, but apparently they are not given the lack of urgency.
SJR 19 — Governor “Born in West Virginia” Amendment
Senator Rupie Phillips wants voters to weigh in on whether gubernatorial candidates should be native-born West Virginians. He told Talkline he plans to modify the current birth proposal to instead expand the residency requirement from five years to 30.
Some question whether he’s serious. He is, and he’s not alone. Supporters argue Governor Morrisey doesn’t fully grasp the lived experience of West Virginians. They see his tenure as politically strategic rather than rooted in long-term state commitment. One lawmaker told me: He’s (Morrisey) not about what he can do for West Virginia, he’s about what West Virginia can do for him.
Voters can judge that characterization for themselves – it is after all best reckoned as an individual decision. If Phillips has his way, West Virginians will get that chance on an upcoming ballot.
Whether one views the resolution as serious or symbolic, it’s fair to say the governor may have invited scrutiny. Morrisey and the legislature never got off on the right foot last year. The problem persists. This year, taking sides in legislative primaries and PAC messaging about using dollars against legislators who stand in the way of advancing the Morrisey agenda isn’t exactly Dale Carnegie-style politics.
Morrisey’s wikipedia page notes he moved to Jefferson County in 2006, some 20 years ago.
It’s unclear whether the resolution will move in committee. The strongest case for advancing it is simple: let the people decide, rather than politicians who may have a stake in the outcome one way or another. What legislator wants to stifle the voice of the people which is politically the voice of God?
And politically speaking, Phillips may be taking one for the team. He supports the idea fully but isn’t on the 2026 ballot. Others who might agree with him don’t have that luxury, instead facing a ’26 primary. They owe him one.
First Lady Denise Morrisey, born in Nebraska, addressed the resolution Thursday on Facebook saying she was personally offended by it. Morrisey noted her upbringing in a military family moving time and again framing the policy as military unfriendly and a discouragement to military members who may wish to run for office in West Virginia one day.
Fair points but Phillips’ restructuring of the resolution from a birth to residency requirement somewhat diminishes the weight of those counterpoints placing the focus on how long someone should live here before they become eligible to hold the governorship. The resolution would not alter criteria for any other elected positions including House or Senate or elected positions within the Board of Public Works.
“If I ever wanted to run for Governor – which I do not – are you suggesting that I have to go back to Nebraska,” she asked rhetorically in a social media post.
Mrs. Morrisey no doubt knows she would have to reside there for at least five years under Nebraska law to be eligible to sit in the governor’s chair. Whether five years is too short or too long for that state is best answered by Nebraskans, just as this question – no matter the reason it has emerged – would be best answered by West Virginians via the polls.
Thanks for the indulgence of a longer piece today. As Lincoln supposedly said, “I could write shorter sermons, but when I get started, I’m too lazy to stop.”
Enjoy the weekend.