You read yesterday that Gov. Jim Justice of West Virginia is trying to turn his state into a destination for liberty retirees and anyone looking for a better place in America. Not to mention his desire to make West Virginia a better place for people already there.
But working against him are Democrats in Congress, including Sen. Joe Manchin (D-WV). Democrats have lined up billions of dollars to be given to every state in America, but have attached rules to the money that will intercede in states’ local affairs by preventing them from cutting taxes for their citizens.
That’s especially rough on West Virginia, which is surrounded by states with lower taxes, and planned to decrease its own taxes to compete on even footing. Because of rules written into the Democrats’ bailout, Justice and Republicans in West Virginia must also penalize West Virginians with a sales tax increase in order to cut income taxes and receive the $1.3 billion promised by the bill.
What’s hard to imagine is why Sen. Manchin would go along with a bill that harms his own constituents. The Wall Street Journal‘s editorial board writes:
While Republicans enjoy a supermajority in the state Legislature, many are reluctant to go along with Mr. Justice’s plan because they fear a business backlash over consumption taxes. Some also worry that the Biden Treasury will later rule that the tax cuts violate the relief bill’s prohibition on “indirect” revenue offsets and claw back federal funds.
In short, Democrats are limiting Mr. Justice’s ability to make his state a more attractive place to work and invest. One of the Democrats who voted for the tax-cut ban is West Virginia Sen. Joe Manchin, who put loyalty to national Democrats above his state. West Virginians can be forgiven for wondering what they did to deserve such hostile treatment.
As other states look to relieve their weary citizens of the burdens COVID-19 has put on them, don’t be surprised if governors and legislatures across the country become angry with Democrats in Washington, D.C. who have limited the available options for state lawmakers.
Action Line: Pay attention to what your elected officials are doing in Washington. There’s a good chance that when they leave home, they forget why they were sent to the nation’s capital.
