Tuesday, January 31, 2017

Don't Increase The Tax On The Few Who Pay Tax, Increase The Number Of People Who Pay Tax

Our current taxation system is an artifact of a time when people had jobs, which meant they had employers who could deduct income tax from their paychecks.

This system doesn’t work anymore. Many people no longer have employers. They have gigs. They have 1099s, not w-2s and w-4s. “Self-employment” is the new unemployment.

With no payroll person to deduct taxes from their pay, there are a lot of people who are essentially on the honor system. Many people are dishonorable.

I’m calling upon our legislature to collect more taxes by changing the way taxes are collected, not by raising taxes on the few honorable people who pay and from the shrinking numbers of people who have a job where a payroll person deducts taxes from their paychecks.

There are two ways the West Virginia legislature can collect more taxes. The first way is to increase taxes on the few who pay them. The second way is to collect taxes at point-of-purchase where everybody will have to pay the tax when they buy food, services, cars, clothing, gasoline or anything else.

Did you ever wonder how a drug dealer pays taxes? He probably doesn’t. It’s a cash business and even if he wanted to pay taxes he really can’t report income without incriminating himself.

Does it make you mad that drug dealers, prostitutes and others in cash businesses benefit from the things government provides but they don’t help pay for it like you do?

The legislature can right that injustice by dropping the income tax that only a few pay and imposing a sales or consumption tax that everybody pays.


West Virginia legislature, don’t increase taxes on the few who pay them, impose a tax that tax evaders can’t evade. Don’t increase the amount of tax each person pays, increase the number of people who pay tax.

Tuesday, January 24, 2017

How To Make West Virginia Irresistible To Outside Investment And The Jobs That Come With It

West Virginia's intractable barrier to prosperity is our low inventory of STEM-educated college grads. Our governor and our legislators say so on radio and TV talk shows but they have not presented a plan to grow West Virginia's supply of STEM grads. 

Here's mine:

The Higginbotham Plan To Make West Virginia Irresistible To Outside Investment and The Jobs That Come With It

1.    Make the Promise Scholarship a STEM scholarship. Companies won’t come here for our English majors, political science majors and communications majors, but they will come here to gain access to our mathematicians, software engineers, chemists and other STEM grads if we produce them in large numbers.

2. Require Promise Scholarship recipients to sign a contract with West Virginia obligating them to stay in West Virginia for, say, 5 years after graduation. Too many of West Virginia’s college grads are leaving with their degrees and making some other state’s workforce magnetic to outside investment. If they give us five years, they’ll marry, have children, build houses, make friends and most will never leave. Maybe along the way they’ll invent things and, who knows, maybe some of them will start the next Apple or the next Google.

3.    Greatly expand the Promise Scholarship to fund tens of thousands of students’ college careers instead of the current 3,000 to 3,500.

4.    Double the per-student annual scholarship award from its current $4,750 to around $9,000 or $10,000.

5.    Buy the college debt of STEM grads who want to come to West Virginia and are willing to sign a contract requiring them to become part of West Virginia’s workforce for at least five years.


6.    Pay for the above with a severance tax, an excise tax or the proceeds from the state lottery or some combination of the aforementioned.

Tom Roten, Hoppy Kercheval, Danny Jones, Mitch Carmichael, Jim Justice, Tim Armstead,