As residents of the Potomac Highlands, there are very few of us that do not know some one that works in the Northern Virginia. Those West Virginia employees are providing labor and services that are driving Northern Virginia's economic engine. The reason is the economic realities of Capitalism.
The first thing that you notice is Virginia's Corporate tax rate a 6.0% flat rate, where West Virginia's is a 8.75% flat rate. West Virginia has the highest workers compensation rates for businesses in the nation. West Virginia is dire need of serious tort reform. The free market uses these factors drive the businesses from West Virginia into Virginia where they are able to be more profitable.
Those same free market forces keeps the workers living here. A 3 bed room, 2 bath home in Fredrick County, VA cost $250,000 while the same size home in Hardy County, WV cost $165,000. Personal Income and property taxes in West Virginia are much lower, than Virginia. The worker in a free market just like the business wishes to retain more of his money, so he chooses to live in West Virginia were the cost of living allows him to do that.
It sounds like the best of both worlds, but it is not. West Virginia is the looser. Without the combination of both businesses and individuals paying taxes West Virginia is loosing out. The state has less money to provide services. This shows in our lack of infrastructure. One thing you can point to is US 50 which is the main artery for the northern part of the Potomac Highlands. US 50 is now the deadliest highway in West Virginia per mile driven. It's design has changed little since the 1920's and it is handling volumes of traffic for which it was never designed, and there is not enough money to upgrade it. A company located in Virginia paying 6% in taxes, pays nothing in West Virginia to use for better roads.
Our bad policies force businesses to move to Virginia, and we end up subsidizing Virginia's economy through our bad policies. Free Market Capitalism has the answer to grow West Virginia's economy. Cut the corporate tax rate to between 4% and 5% to make us equal with the lowest 10 states, and not in the highest 10 states. End Brick Streets monopoly in workman's comp insurance now rather than later. Competition among insurance providers will bring lower rates. Enact comprehensive tort reform to end frivolous lawsuits that drive out business. The combination of these initiatives will allow businesses to increase profits by locating in West Virginia, and a business located in West Virginia pays taxes in West Virginia.
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