But all of the state income tax goes to public education; a significant cut there could reduce growth in school spending. One of Huntsman's advisers quietly told a top education official before the meeting: "We're trying to protect you."

Leaders of the LDS Church had asked that any state income tax reform still include a deduction for charitable giving, adding that nonprofit entities provide many benefits to the state. Huntsman confirmed Wednesday that he met with LDS leaders about the issue.

"We've listened. We've learned. In some cases, we've implemented," he said of that and other meetings about taxes held with various religious and community groups.

Cornia said a modified deduction is justified. Under the complicated formula in Huntsman's plan, the deduction would become a tax credit. Many people — especially those of modest means — who make considerable donations each year (faithful LDS Church members "tithe" 10 percent of their gross income) would likely see more financial benefit under Huntsman's plan than under the current 100 percent deduction system, Cornia said.

Many charities and foundations provide benefits to Utahns that if not provided would have to be picked up by taxpayers, he said. For example, if only half of all Brigham Young University students attended state universities instead of the church-owned private university, it would cost the state an additional $50 million a year, he said.

Home mortgages

Dumping the long-standing deduction for home mortgage interest isn't sitting as pretty, especially given the political realities of the real estate and homebuilding industry.

One legislator who asked that his name not be used said, "Who wants to go up against the $1 million Realtor PAC" in any re-election effort after excluding mortgage interest while keeping deductions for charities and dependent children?

Homebuilders and Realtors have testified before the task force previously saying the interest deduction encourages home ownership, which overall is a very good thing.

Ironically, Sen. Al Mansell, R-Sandy, a former Senate president, is currently the national president of the Realtor association — whose local chapter president spoke strongly against removing the interest deduction several weeks ago.

But Prescott and Cornia said Wednesday that numerous studies show that the deduction — which is not even calculated by banks or mortgage firms in qualifying people for house buying loans — really has no impact on home ownership.

In fact, some of the states with the highest home ownership percentages either don't have state income taxes or don't give interest deductions on their state returns.