Have read the "Proposed W. Va. Tax Changes (Senate Bill 335), five (5) times. And, I will be the first to admit that I am not very smart. So if I may?
NOTE: this is a "Partisan" bill passing from the Senate 18-0. No Demicons have signed on yet.
The name of a General Consumption Tax appears to be a Value Added Tax (VAT), when the dust settles? This has been a very pushed item by the Feds for many years in Election Campaigns by mostly the Republicrats. And too my knowledge does not exist in any State or Territory of the U.S.? Has never passed because of the unbelievable complexity of putting it into actual Law/ Usage? Is widely used in Europe for many years.
According to the West Virginia Chamber of Commerce in an "Independent study", SB 335 is a "pyramiding" issue when added on multiple times during the production/ distribution process. This is exactly what a VAT does also. At each level be it
1. production/ manufacturing (pick the word you like), a VAT is put on the product (and don't forget at the farming level as I have seen no exemption on Harvesting up to now?). This is then in the possession of a:
2. Cannery, Retail Chain/ Packaging Company selling food; Distribution if a commodity like a Car, Windows, Furniture, Oil/ Natural Gas and so on. Yet, another VAT add on as with the:
3. Wholesaler if that particular item goes into such a chain? And yet another VAT add on.
4. Finally, a Retailer outlet for the item to YOU, the end user and still ONE more VAT.
I made the mistake or not of reading SB 335 and it is an interesting document to be sure. I may or not have found the usual ambiguities that are so prevalent in the writing of West Virginia Laws and allow for multiple interpretations in what is intended? But in fairness, I did not go back and cross exam every "per this and that which was referenced" so it may be more sensible than it initially appeared?
It was a bit confusing when one looked at the "at a glance" part in the media and how it referred to Electric prices up by 8%? That would appear to NOT be a VAT if only up by 8% when it was noted elsewhere that "pyramiding" or multiple tax levels are incurred cause the effective Sales Tax (don't they mean VAT?), rate to exceed the Statutory rate? Even with Electricity, wouldn't one have Producer, Distributor and Retail usage levels?
There appears to be a whole bunch of tax increases on various items the 8% by itself not with standing? Folks, you are going to pay through your noses for the privilege of living here if and when this passes. So with 18 Republicrats in the Senate signed on and the house have a larger separation between Republicrats and Democons, it would appear this may pass?
But here is another question if I may? It took YEARS for the U.S. Legislative Branches to allow for State Sales Taxes to be deductible versus the State Income Taxes that were. How is this going to drop out as either a realistic VAT or the "General Consumption Tax" that this is being called? Knowing that not everyone itemizes, this could be a kick in the teeth for those here who try to deduct a "General Consumption Tax" with the IRS?
A few days back, there was a to do over the proposed $4.055 billion State Budget versus the $4.50 billion that Mr. Justice needs. Still lot of fat was kicked around and is correct. Each time someone gets into a State Agency, a few million more drop off the money tree that has been hidden to date.
And as noted before, Mr. Trump's budget may well end the controversy on the number of people flying out of the MOV airport and the number of flights being cancelled? 'nuff said'.