From Deseret News archives:

Utah GOP leaders push tax cut plans

$115 million slash may be spread across board

Published: Tuesday, July 18, 2006 2:22 p.m. MDT
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Now, said Harper and Bramble, about $70 million can be given in state income-tax cuts, but since the state is seeing even more tax revenue flowing in, greater tax cuts can and should be given.

Harper said the House GOP plan "would be an income-tax cut of between $105 million and $115 million. And we can afford it, because so much new tax revenue is coming in."

While some GOP legislators are talking about a September special legislative session to adopt the new state income-tax systems — and thus tax cuts before all 75 House members and half the Senate face voters in November — others say it may take more time for all 104 lawmakers to feel good about the changes.

House Speaker Greg Curtis, R-Sandy, he doubts that a broad compromise can be found in time to give the tax cuts before the November elections.

"I don't see anything happening" in a special session "before the elections," said Curtis. A late 2006 special session would be needed to give Utah Tax Commission officials time to print the new, dual-system tax forms.

With state revenues coming in as much as $300 million over budget in the fiscal year that ended June 30, Bramble said in the current fiscal year of 2006-07, there could be as much as $200 million now available for tax relief.

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"The $70 million (set aside for income tax relief) may not be enough. Once we agree on the basic structure, we may want to double that," said Bramble.

Conservative GOP lawmakers want to return at least some of that money via tax cuts — and thus slow the growth of state government. The new $9.5-billion budget that started July 1 is more than 17 percent higher than last year's spending, and conservatives have said that only through tax cuts can state spending be curbed.

Mower added: "We've supported true tax reform for some time. These (new) reforms would not only give immediate tax relief, but provide a long-term tax structure that makes Utah more competitive" in economic development with surrounding Western states.


E-mail: bbjr@desnews.com

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