New analysis urged for tax reform plan
Simply including more accurate state income tax projections reflecting the burgeoning personal income growth in Utah the governor could lift the cap of five personal exemptions and restore the deduction for home mortgage interest, said Sen. Curt Bramble, R-Provo.
"The closer we can come to no real winners or losers, the less likely there will be opposition," said Bramble, the co-chairman of the state's Tax Reform Task Force.
Bramble, a certified public accountant, says by using income projections for 2007, the governor could keep a 5 percent basic tax rate, give an exemption for every minor child and a deduction for mortgage interest.
Huntsman's tax experts used actual income tax returns from 2003 to formulate his plan. The projections used by legislative staff reflect what would be expected to be collected the first year that changes to the tax system would take effect.
Even better for conservatives, while Huntsman's plan would amount to a $10 million to $14 million overall tax cut, Bramble said the new numbers would give at least a $23 million income tax cut.
If no tax cut is wanted, then the senator said the tax rate would only increase to 5.05 percent from 5.0 percent.
Huntsman spokeswoman Tammy Kikuchi said that Huntsman and his advisers have not seen the new numbers or analysis.
"The governor does want to hold to the 5 percent" rate on personal income taxes, said Kikuchi, because lowering the current 7 percent top rate by 2 percentage points will stimulate economic development one of Huntsman's main goals.
"We used real numbers on the 2003 returns," she added. While those are likely conservative numbers considering how much personal income has grown in Utah over the past two years, 2007 income projections are just that projections.
"Still, maybe because of growth we may be able to consider every (deduction being included) without a big tax cut," she said. "But the governor wants to get input (on his plan as presented) from around the state, see any final analysis numbers and then move forward" in the 2006 Legislature with a tax reform debate.
Huntsman "always believed that the Legislature would be part of the tax reform solution, and he's happy to look at responsible proposals, which he considers (the new numbers) to be," Kikuchi said.
The governor did preserve the deduction for charitable contributions in his plan, but he and his tax experts have said the state couldn't lower the rate to 5 percent and continue to allow unlimited personal deductions and a tax break for mortgage interest.
Comments
- Odd Fellows Hall move 6:13 p.m.
- Man charged in child sexual assault 5:43 p.m.
- Jazz in back of line for free agents 5:36 p.m.
- Dining out: Ruth's Diner 5:04 p.m.
- Tactfully bring up plastic surgery 5:04 p.m.
- Malden's craft made good movies 5:04 p.m.
- Megan Joy looks forward to Utah 5:04 p.m.
- Movie listings 5:04 p.m.
- Box office 5:04 p.m.
- Weekend calendar 5:04 p.m.
- Blazers may offer Millsap a contract
- Utah's top 10: Wealth of recreation
- MWC, WAC rushed into BCS
- Restaurant burns in 3-alarm fire
- O'Connor unhappy Fes not with team
- Keeping golf light on the wallet
- Teen injured in fall from waterfall
- River flow marks birth of sanctuary
- Fatigued Jazz no match for Pacers
- Murder charge filed in shooting
- Bronco collecting a galaxy of recruits
138 - Letters: Palin mistreated
136 - Teachers struggle with district cuts
134 - Blazers may offer Millsap a contract
112 - 'Tea party' protesters unhappy
107 - Fairness of BCS debated
81 - Stadium of Fire lights up the 4th
79 - Chaffetz eyes challenging Bennett
72 - Millsap not franchise player
70 - Services bids farewell to Jackson
70
As more and more dads are put out of work in this economy, I've been...
The night was balmy though buggy at SPOC, the Stansbury Park Observatory...
THis is a great move. Thomas is great at defense and Millsap needs more...
The Jazz need a defensive presence and they need to get rid of Carlos Boozer...
Blake will give the jazz another needed 3 point threat, therefore helping...
What I like about the potential trade is you'd have to assume Portland will...
Portland gets Hinrich from Chicago and Fesenko from Utah. Chicago gets...
about time the Jazz are called to town on this issue lets see if we can trade...
Now, anonymous, you know who I am. I recommend that you read the Book of...
i was a news editor for a houston morning newspaper -- now deceased (thanks...
jazz get: john salmons travis outlaw tyrus thomas nicholas batum bulls...
i would like to get more for Snoozie...However if this brings chemistry think...


You can be the first to comment on this story.