From Deseret News archives:
Flat tax faces rough road
The church's opposition and likely forthcoming opposition by other religious and charitable organizations will have a "strong dampening effect" on any push for a true flat-rate income tax, said House Speaker Greg Curtis, R-Sandy.
Senate President John Valentine, R-Orem, said he anticipates other "religious entities and organizations will also speak out on this," and that the combined voices "will have an impact on the debate over doing away" with the charitable deduction.
"The LDS Church may be the first to speak out," said Valentine, a tax attorney, "but we will hear from others, including the financial community, on the idea of doing away with the deduction for primary residences' mortgage interest."
Gov. Jon Huntsman Jr. still thinks the flat tax should be debated by the task force.
"We're still anxious that a flat income tax rate be on the table for discussion. We think it's a concept that's very worthy of consideration," said the governor's legislative liaison, Mike Mower. "It will be one of many proposals that will be considered over the next few months."
The state's Tax Reform Task Force is considering all kinds of tax reform issues through this summer and fall, including a flat-rate income tax. A "pure" flat-rate tax has no personal exemptions or deductions. In hearings Thursday, the task force heard that Utah's top income tax rate 7 percent could be lowered to 4 percent if a pure flat rate system was adopted.
Task force members are scheduled to make at least some recommendations to the governor and the 2006 Legislature in January.
Asked to comment on the idea of doing away with all deductions on state personal income taxes, Dale Bills, a spokesman for The Church of Jesus Christ of Latter-day Saints, issued the following statement Thursday evening:
Comments
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