Utah tax cut no slam dunk
Huntsman doubtful, but some lawmakers pushing cut, reform
Lawmakers serving on the state's Tax Reform Task Force, however, have a different idea. Not only have several members of the task force come out in favor of looking at a tax cut, the group itself has pledged to "right-size" government.
And that means reducing the overall amount of revenue state government collects from taxes, not just shifting the amount of money coming in from income, sales, property and other levies.
The latest figures from the Utah State Tax Commission anticipate an additional $112 million in revenues this budget year, mostly in income taxes. And the 2005 Legislature had more than $600 million in extra money to spend.
Huntsman does favor eliminating corporate income tax and appears to be leaning toward a flat income tax rate for individuals. However, he said those cuts likely would be offset, at least in part, by extending sales taxes to services as well as goods.
Under that plan, similar to what was proposed by former Gov. Olene Walker, Utah taxpayers might end up with a lower income tax rate but paying more in sales taxes, since services such as health care account for two-thirds of the state's economic base.
Getting rid of the corporate income tax is supposed to result in more revenue for the state, not less, by boosting economic development. Huntsman said it "produces more in the way of growth over the five- or six-year phase-out time. I don't see that as a net loss."
There's a push by at least some lawmakers for a tax cut on top of any tax reform next year, when all of the House and half of the Senate will be up for re-election. Fueling their focus on seeing that government gets less money is the ever-growing state surplus.
Because of the surpluses, Senate President John Valentine, R-Orem, has said if revenues continue to increase, he has "a strong interest in looking at a tax reduction" next year a tax cut, not a one-time rebate.
Another GOP senator, Curt Bramble of Provo, said the task force will consider cuts as they review the state's tax system. "I haven't been committed to a revenue-neutral process since day one," said Bramble, the co-chairman of the task force.
But Bramble also said he believes the governor and lawmakers will find common ground, even though "with these new revenue estimates, it's fair to say there are some legislators who want to see a tax cut."
Comments
- Jackson event draws thousands 9:02 p.m.
- Jackson hearing postponed 9:01 p.m.
- Contador knocks Armstrong into 3rd 9:01 p.m.
- Two men order off church plaza 8:59 p.m.
- Flight attendants want larger sizes 8:58 p.m.
- People on the move 8:53 p.m.
- 'Smart Home' block party in Provo 8:37 p.m.
- Death near Rockville suspicious 7:46 p.m.
- Attempted murder case refiled 7:46 p.m.
- Family Fun Day kick off Days of '47 7:42 p.m.
- LDS seminary principal arrested
- Jazz talking Boozer trade?
- Reactions on Boozer speculation
- Stadium of Fire flag burning was fake
- Jazz in back of line for free agents
- Blazers offer Millsap 4-year deal
- A primer for the 6th Potter film
- Okur signs two-year extension
- Jazz won't meet Lopez on Europe trip
- Restaurant destroyed by fire
- Bronco collecting a galaxy of recruits
141 - Letters: Palin mistreated
141 - Teachers struggle with district cuts
138 - Jazz talking Boozer trade?
136 - LDS seminary principal arrested
131 - Blazers may offer Millsap a contract
123 - Stadium of Fire flag burning was fake
93 - Fairness of BCS debated
81 - Chaffetz eyes challenging Bennett
74 - Letters: Single-payer system best
71
By now you've probably read about the investigation that showed just how...
Sen. Scott Jenkins was name-checked by Jay Leno Monday night during his...
Anonymous | 6:13 p.m. If YOU believe it is inevitable that the planet will...
Are the Trail blazers still interested in a trade with the Jazz? If the...
Yes, this is a very bad deal. I'm glad you geniuses can see through it. Now...
Let Obama pay for it all. He taxing me to death, to help the so called poor,...
Paul did exactly what the Jazz management told his agent to do: "Go out and...
How about a little sympathy here? It is much, much harder to pay campaign...
then we release harpring
i hope they go for lamar odom if they dont resign milsap. they give golden...
Another wild idea - why not limit the costs involved in healthcare. Why does...
Brother Pratt was a great teacher when I had him. I slept through seminary...




You can be the first to comment on this story.