Published: June 26, 2008 03:32 pm         

Making ends meet in WV — Cuts in gas, food tax welcomed

With rising gas and food prices creating an undue hardship upon thousands of families across the region, twin announcements Thursday by Gov. Joe Manchin provided a glimmer of hope to those who are struggling to make ends meet.

Manchin joined several state officials in Charleston Thursday morning to announce the final phase down of the West Virginia food tax at a Kanawha City grocery store. While some Republican lawmakers have called for a complete elimination of the food tax, Manchin and other Democratic lawmakers have instead advocated a coordinated reduction of the food tax.

The governor has been working since 2005 to have the food tax cut in half. Manchin argues that the phase-down of the food tax will help families across the Mountain State save millions of dollars at the grocery store.

He also correctly argues that in addition to saving taxpayers money, the final reduction of the food tax also will help to level the playing field for grocery stores with their competitors in neighboring states.

Given the tremendous need faced by border communities such as Bluefield to level the playing field with competitor states such as Virginia, it would have been very effective if Manchin had held Thursday’s ceremony at a Bluefield store — where grocers must compete on a daily basis with the business-friendly Commonwealth of Virginia.

The challenge faced by businesses struggling to compete in border communities is no better illustrated than in Bluefield.

Nevertheless, the final phase-down of the West Virginia food tax is certainly welcomed. Beginning July 1, the food tax will drop to 3 percent. Manchin said the cut will save state taxpayers about $25 million next year.

Lawmakers in Charleston also approved Manchin’s proposed freeze on the gasoline tax. Manchin proposed a moratorium earlier this year on the add-on gasoline tax, or the tax that is computed on the average wholesale price of gasoline from July through October of each year.

Manchin hopes the temporary freeze on the gas tax will help to ease soaring fuel costs in the Mountain State. The governor emphasized that “every penny helps” in trying to assist motorists faced with record-shattering prices at the pump.

Lawmakers are hoping to offset the resulting loss in highway revenue that would have been generated by the increase in the gas tax with the estimated $40 million in revenue from this year’s surplus.

At a time of soaring gas and food prices combined with continued increases in utility rates, every penny saved will benefit families who are struggling across West Virginia. The reductions in the food and gas taxes are important steps.

     

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