Should West Virginia Eliminate the State Income Tax?
- Robert Vincent
- Feb 19
- 5 min read
What the Nine No‑Income‑Tax States Can—and Can’t—Teach Us
By Rob Vincent,
Candidate for House of Delegates, District 99
Periodically, I come across West Virginia, families that are asking a simple question that has big consequences: Should our state eliminate the personal income tax?
It’s an appealing idea. Nobody enjoys paying income tax, and the promise of “keeping more of what you earn” resonates with every household. But before we make a decision that would reshape our entire state budget, we need to look at the facts—not the slogans.
Nine states in America operate without a broad‑based personal income tax:
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
These states are often held up as proof that eliminating the income tax automatically leads to population growth and economic expansion. But the real story is more complex—and the U.S. Census Bureau’s migration data helps us understand why.
What the Census Bureau Shows: Who’s Really Moving Where
Using the U.S. Census Bureau’s Net Domestic Migration (2020–2024) dataset, here’s how the nine no‑income‑tax states actually rank:
Rank (of the 9) | State | National Rank (All 50 States) | Trend |
1 | Florida | Strong inbound migration | |
2 | Texas | Strong inbound migration | |
3 | Tennessee | Very strong inbound migration | |
4 | Nevada | Strong inbound migration | |
5 | South Dakota | Moderate inbound migration | |
6 | New Hampshire | Mild inbound migration | |
7 | Alaska | Outbound | Net outbound migration |
8 | Washington | Net outbound migration | |
9 | Wyoming | Mild outbound migration |
What this means
Only three of the nine no‑income‑tax states rank in the top 10 for inbound migration:
Florida
Texas
Tennessee
Nevada performs well in the most recent single‑year window, but not in the full 2020–2024 cumulative dataset.
Thinking It Through for Jefferson County and West Virginia
“Three of the nine no‑income‑tax states rank among the top 10 for net domestic in‑migration, according to the U.S. Census Bureau.”
Where Does West Virginia Stand?
A Crucial Comparison**
To understand whether West Virginia can follow the same path, we must look at our own demographic reality.
West Virginia’s Population Trend (2020–2024)
According to the U.S. Census Bureau:
West Virginia has experienced net outbound domestic migration every year from 2020 to 2024.
Our total population has declined, continuing a decades‑long trend.
We are one of the oldest states in the country, with a median age over 43.
We have one of the lowest birth rates and lowest workforce participation rates in the nation.
Why this matters
States like Texas, Florida, and Tennessee can afford to experiment with tax structures because they are growing. West Virginia is not.
When a state is losing population, every tax cut shrinks the revenue base even further. That means:
Less money for schools
Less money for counties
Less money for infrastructure
Less money for public safety
And the burden shifts to the people who remain.
This is the opposite of what we need.
How No‑Income‑Tax States Actually Pay Their Bills
Eliminating the income tax doesn’t eliminate the cost of running a state. Every one of the nine states relies on higher taxes elsewhere or unique economic engines.
State | How They Fund Government |
Alaska | Oil & gas severance taxes, high local property taxes |
Florida | High sales taxes, tourism taxes, fees |
Nevada | Gaming taxes, tourism taxes, high sales taxes |
South Dakota | Broad sales tax (including groceries & services), property taxes |
Tennessee | Nation’s 2nd‑highest combined sales tax (~9.55%) |
Texas | Extremely high property taxes, high local spending |
Washington | High sales taxes, gas taxes, property taxes, capital gains tax |
Wyoming | Oil, gas, and mineral severance taxes |
New Hampshire | Very high property taxes; taxes interest & dividends |
The pattern is unmistakable
Every no‑income‑tax state shifts the burden to:
Sales taxes
Property taxes
Tourism or gaming taxes
Oil, gas, or mineral extraction
There is no free lunch.
Coal’s Contribution: A Snapshot of Its Role in Our Economy
Coal has powered West Virginia for generations. It built towns, put food on the table for thousands of families, and helped fuel America’s growth. We owe a great deal of respect to the men and women who have worked in the mines and to the communities that supported them.
And while the industry is smaller today than it once was, it still contributes important revenue to our state.
Coal Severance Tax
5% of gross value, plus a small surcharge
Generates $150–$300 million per year statewide
Revenue rises and falls with global markets
Property Taxes
Coal companies pay taxes on:
Equipment
Land
Coal reserves
These dollars support county services, especially in coal‑producing regions.
Corporate Income Tax
Paid in profitable years, though market volatility means some years produce little or none.
The bottom line
Coal remains a valued part of our economy and our identity. But even at its strongest, coal revenue has never been large or stable enough to replace the personal income tax.
And here’s the part Jefferson County families should think through and consider:
Jefferson County receives no coal severance revenue. Eliminating the income tax would shift the burden onto counties like ours while coal‑producing counties continue receiving their share.
This isn’t about criticizing coal. It’s about being honest with the math.
The Benefits of Eliminating the Income Tax
To be fair, there are real advantages:
1. Attracting high‑income earners and businesses
Florida, Texas, and Tennessee have seen strong population and business growth.
2. Potential economic boost
Research shows potential increases in GDP, wages, and business formation.
3. More predictable revenue
Sales and property taxes fluctuate less than income taxes.
4. Political simplicity
“Keep what you earn” is easy to understand.
These benefits are real—but they come with trade‑offs.
The Challenges and Hidden Costs
1. Higher sales or property taxes
Every no‑income‑tax state raises taxes somewhere else.
Examples:
Texas property taxes are among the highest in the nation.
Tennessee has the 2nd‑highest sales tax.
New Hampshire has the highest property tax burden in America.
2. Reduced funding for public services
Lower‑tax states often spend less on:
Public schools
Infrastructure
Health care
Social services
3. Reliance on unique economic engines
Some states can avoid income tax only because they have:
Oil & gas (Alaska, Wyoming)
Tourism & gaming (Nevada, Florida)
4. Regressive tax burden
Sales and property taxes hit lower‑income families hardest.
5. Local governments pay the price
States like Texas push costs down to counties and cities, forcing local tax hikes.
What This Means for West Virginia
West Virginia does not resemble the states that successfully operate without an income tax:
We don’t have Alaska’s oil revenue.
We don’t have Nevada’s tourism economy.
We don’t have Texas’s booming population.
We already have one of the highest sales tax burdens relative to income.
Our counties are already struggling with state‑level funding decisions.
Our population is shrinking, not growing.
And even with deep respect for coal, its revenue cannot fill the gap.
If West Virginia eliminated the income tax, we would face three choices:
Raise sales taxes
Raise property taxes
Cut funding for schools, counties, and essential services
Or all three.
And in counties like Jefferson, where property values and incomes are higher, families would likely pay more, not less.
My Commitment: Is to do the honest math, to get Results, Not Rhetoric
West Virginians deserve leaders who tell the truth—even when it’s complicated.
Eliminating the income tax sounds simple, but the consequences are real. Before we make a decision that affects every school, every county commission, every road, and every family budget, we must look at the full picture.
I believe in fiscal responsibility, constitutional stewardship, and transparent government. That means grounding our decisions in facts—not wishful thinking.
West Virginia’s future depends on results, not political rhetoric.
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