Published: November 01, 2008 11:45 pm      

W.Va. Senate candidates discuss business franchise tax

KEYSER, W.Va. — The current economic climate remains high in the minds of both state Senate candidates for District 14.

Democrat Bob Williams and Republican Gary Howell are both vying for the seat that would represent Barbour, Mineral, Preston, Taylor and Tucker counties as well as part of Grant and Monongalia counties.

“West Virginia has a lot of advantages as a state,” Howell said. “We have the natural resources that many states don’t have ... Unfortunately, we have a business climate of the Legislature doing the same thing over and over again and that’s what hurts us.”

Tort reform is also overdue, Howell said, explaining that some of the efforts to prevent frivolous lawsuits in medical malpractice should be spread to other businesses. He said that companies don’t want to locate to West Virginia because there is a greater chance of getting sued and having to take it to court.

Howell said he feels the tax rates and additional taxes like the business franchise tax have hurt West Virginia’s economy and prevented the kind of growth seen in surrounding states. He said he would like to see that tax, in particular, eliminated immediately, rather than waiting several years.

However, Williams said he supports a gradual step-down from the current tax rate until its eventual elimination in 2015.

“The total business franchise tax brings in about $200 million,” Williams said. “If we would just in one vote eliminate it, we would have to figure out a way to replace $200 million in our budget. When you look at how much money is discretionary to the Legislature, there is only about $430 million of discretionary spending. To take out nearly half of that would be, in my mind, irresponsible.”

He said he would like to see more recruiting done to bring businesses into the state and particularly into the district. He said while he supports trying to bring big businesses into the state, he also feels it is important to help existing, small businesses grow because they have already been in West Virginia and will not go simply because tax incentives and state programs have ended.

Williams added that there is a definite need to improve the roads, water and sewer systems in the state, but that the state must work within its budget to do so.

“We have huge needs,” Williams said. “Many, many of our primary roads need upgraded. A majority of our secondary roads need improved and our bridges are in dire need. We don’t have enough money in the state roads fund to do what we need.”

He said this has become even more true as people are using their cars less and less because of high gas prices. The gas tax is what helps to fund the state highway fund.

Howell said he would like to see more projects done through bonding so that they can be completed sooner rather than later. As projects like Corridor H are delayed, he said, they get more expensive as costs increase year by year. Paying off bonds would be less expensive, he feels, than waiting several years to try to construct the necessary roads and complete major improvements.

He added that he’d like to see fewer of the state’s contracts given out to contractors and instead done by the state crews.

“They have been selling off equipment and contracting jobs out,” Howell said. “It typically costs taxpayers 30 percent more. The governor said the equipment was not being used, but it’s not being used because they’re farming out jobs. We could do less construction work or we could do 30 percent more.”

Contact Sarah Moses at smoses@times-news.com.