From Deseret News archives:

Huntsman backs 'flatter' tax to help low-income Utahns

Published: Thursday, June 23, 2005 11:05 p.m. MDT
 |  E-MAIL | PRINT | FONT + - 
Forget the debate over flat tax. Gov. Jon Huntsman Jr. said Thursday the state should set "flatter" income tax rates instead.

The difference? A so-called flat tax would mean a single rate for taxpayers, no matter how much — or how little — they earn. A flatter tax, as defined but not detailed by the governor Thursday, would offer a break to those at the lower end of the earnings scale.

"I want to make sure that whatever we do is fair, and by being fair, I mean not putting a burden on those who are at the lowest end of the income category. So it's a flatter tax, not a flat tax, that we're working toward," Huntsman said, calling it "a flatter, simpler tax."

His comments, made during the taping of his monthly televised news conference on KUED Channel 7, come on the heels of a special Tax Reform Task Force subcommittee recommendation that it consider moving Utah to a 4 percent income tax rate.

That preliminary step has already been criticized by some lawmakers as enriching the wealthy at the expense of the poor. But task force members have so far shown little interest in looking at alternatives such as changing the current tax brackets so lower-income earners would pay less.

Story continues below
The governor said he wants to give taxpayers "more in their hip pocket to put back into the economy," but any tax plan "that would adversely affect those at the lowest end of the income scale would not be acceptable to me."

According to legislative researchers, taxpayers earning $45,000 annually or less would see a tax increase with a 4 percent flat tax while those earning $55,000 or more would see their taxes cut.

The Church of Jesus Christ of Latter-day Saints, which asks its members to donate 10 percent of their income to the church, has called for the state tax system to continue to provide tax deductions for that and other charitable giving.

The 4 percent income tax rate would do away with the existing deductions for charitable contributions, mortgage interest and dependent children. If those deductions are left intact, the rate increases to 6.6 percent, or near the 7 percent rate under the current system.

Huntsman predicted a flatter tax proposal would have an easier time winning approval in the House and the Senate than the current flat tax plan being considered by the task force.

"I think a flatter tax could," he said. "A straight flat tax? I don't know. I haven't done the counting. . . . There's just so much in process right now, it's hard to draw any conclusions."

He noted that the tax reform study includes a review "whereby everyone who's involved in this task force will look at possible deductions, whether they should be in or out."

Comments

You can be the first to comment on this story.

Image
Deseret Morning News graphic

previousnext

Latest comments

When Boozer was shooting the free throws, why Sloan didn't substitute Mathew...

Letters: Global warming a lie

actions, I will be forced to be accountable for them. I refuse. I am an...

What's with the Utah fans flashing the double L sign?

@mark: So Sam da Ham... you were just making it up?" I'm a climate...

Utes excited to go to San Diego

"I have no idea why BYU fans are talking smack about bowl opponents. Even if...

TCU versus BSU unpopular

You say to "quit whining and play somebody." Isn't that what everyone is...

BoM translation remarkably consistent

Reading these comments, I start wondering-- Whatever happened to faith? Why...

Utes excited to go to San Diego

All those numbers when all you reall need to know is that BYU has beat Utah...

BYU eager for crack at Oregon State

All thos numbers when all you reall need to know is that BYU has beat Utah...

So Sam da Ham, when you said this: "Not so. Al Gore is poised to make...

Advertisements