From Deseret News archives:
Senate Republicans combine tax-cut proposals
Single bill will contain both food credit, flat-tax plan
The Senate majority is calling for poorer Utahns to get a credit on their income taxes for sales taxes paid annually on food purchases about $75. But House Republicans and Gov. Jon Huntsman Jr. both want sales tax removed from food purchases, period.
So the Senate GOP caucus has decided to give their plan a boost by backing a single bill that will contain both their proposed income-tax credit and the flat-tax plan supported by most lawmakers as well as the governor.
The bill, which will be carried by Sen. Curt Bramble, R-Provo, is still being drafted. Before it's ready to be introduced, the Senate caucus will have to decide exactly how big the tax credit should be, and who would qualify to receive it.
Senate President John Valentine, R-Orem, wasn't ready to call the bill a political ploy, even though it would force supporters of the flat-tax rate to go along with the income tax credit for sales taxes paid on food.
That's not likely how the House sees it, however. Today, House members may debate HB109, Rep. Merlynn Newbold's bill that would remove all of the sales tax on food at the cash register.
The bill is expected to be amended to reflect that a compromise has been reached with the Utah League of Cities and Towns one that would make up the revenue local governments would lose from their share of the sales taxes collected on food.
And Rep. John Dougall, R-Highland, is moving forward with his own flat-tax bill, which he said will include a section repealing the state's portion of the sales tax on food that will "reflect Rep. Newbold's bill."
Valentine said the two different tax proposals could well end up in a conference committee, where an attempt would be made to come up with a compromise. "And who knows from there," the Senate leader said.
Huntsman's deputy chief of staff and spokesman Mike Mower said Tuesday that while the administration is pleased the Senate is moving forward on a flat-tax rate, "we remain focused on providing immediate relief at the checkout counter by removing the sales tax from food."
Mower said that's what Utahns want. "Our phone's not ringing off the hook for a tax credit," he said. "But we are receiving lots of calls and comments about simply removing the sales tax off food."
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