Cut the Income Tax, Not Taxes on Tips and Overtime

In the Mountain State, where workers labor in a variety of jobs from coal to hospitality, the siren call of “no taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. on tips and overtime” feels attractive. In 2025, the legislature considered exempting overtime income in a bill that ultimately failed. Now, some are seeing 2026 as an opportunity to revive that measure and add no taxes on tips to the mix, echoing President Trump’s One Big Beautiful Bill Act, which did the same at the federal level.

Though politically popular, this is a short-sighted gimmick that risks derailing West Virginia’s real path to prosperity. Lawmakers in Charleston should steer clear of these carveouts and instead focus on income tax reforms that deliver broader, more sustainable economic benefits for all West Virginians.

The impulse to ease the tax burden on tipped servers in diners or overtime earners in manufacturing plants is understandable. West Virginia’s economy relies heavily on these sectors, and after years of stagnation and regulatory pressures, any relief sounds appealing.