State income taxes could be slashed – or even eliminated – for state residents the first two years after graduation from an institution of higher education under a plan unveiled by the Charleston Regional Chamber of Commerce today at its annual “Issues & Eggs” legislative breakfast. The plan also calls for $500 state tax credit for interest paid on a qualified student loan.

Chamber Chairman Mike Basile, Spilman, Thomas & Battle, announced the proposals to an audience of nearly 300, including an estimated 65 West Virginia Senators and Delegates, at the Charleston Marriott Town Center.

The “Intellectual Capital” legislation outlined by the Charleston Chamber calls for a $25,000-per-year reduction of the federally-adjusted annual income for the purposes of calculating an individual’s state income tax. The reduction would only be available to West Virginians residing and working in the state for two years following graduation from a qualified institution of higher education with a two-year, four-year or advanced degree.

This proposal would translate into a sizeable pay increase for new graduates at the beginning of their careers when their salaries may be low and their student loan burden high.   There would also be a major benefit for graduates, particularly those from law, business and medical schools, whose salaries could be higher. For example, an individual earning $50,000 per year would see his or her taxes cut by approximately $1,100.

Senator Richard Browning (D-9th), chair of the Senate’s Economic Development Committee, and Senator Brooks McCabe (D-17th) have requested that the proposal to be drafted into legislation and assigned a bill number to be reviewed and considered in this legislative session.

“I cannot think of anything that would have a bigger impact on the future of West Virginia than expanding our intellectual capital and capacity for innovation,” said Basile.  “We will not be able to tackle the challenges and seize the opportunities facing the Mountain State if we don’t attract and retain the best and the brightest young minds.

“The continuing exodus of young, educated professionals from West Virginia requires decisive action,” he explained.  “We are excited to propose this bold step to reverse this troubling trend.” (more…)