However, a connection between the deduction and individual and family debt is apparent, Huntsman's experts said.

"We have the third-heaviest debt burden" in the 50 states and the highest bankruptcy rate in the country, Prescott said. Much of that comes through second mortgages, used not to remodel or expand homes (thus increasing equity) but to just buy things. "There's some kind of message there" — the state should not be encouraging such consumer debt through tax policy, Prescott said.

Personal exemptions

Finally, some task force members didn't like capping personal exemptions at five, which in effect means large families would be paying more taxes. There is a "myth" that Utah is stacked with large Mormon families, said Prescott, who added that Huntsman's plan wouldn't affect 90 percent of families because they have three or fewer children.

However, Senate President John Valentine, R-Orem, said it would only cost around $13 million to keep the unlimited child exemptions. And since Huntsman's plan would save up to $14 million, "Why are you picking a fight that doesn't have to be picked?" Valentine asked.

In his press conference, Huntsman said capping dependent exemptions at five "is negotiable." As with his decision to eliminate the mortgage deduction from his plan, the governor said it was done to lower the tax rate as much as possible.

Sen. Greg Bell, R-Farmington, presented an alternative tax proposal that he described as "progressive" and the "opposite of a flat tax." It would shift the burden of taxes toward higher-income earners who can better afford to pay the current higher rate of 7 percent.

The task force was not impressed, voting later in the day to take public comment on the Bell proposal but not to recommend it for further study. Any changes to the tax system wouldn't take effect until the 2006 tax year.

The effort to reform Utah taxes actually began with former Gov. Olene Walker, who released her recommendations shortly before Huntsman took office at the beginning of the year. The task force is considering changes to other taxes as well.

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Contributing: Josh Loftin

E-mail: bbjr@desnews.com;lisa@desnews.com