Utah taxes cut about $50

Legislators also agree to option hike for transit

Published: Tuesday, Sept. 19, 2006 11:48 p.m. MDT
 |  E-MAIL | PRINT | FONT + - 
As expected, the Utah Legislature in special session cut income taxes Tuesday and agreed to a local option sales-tax hike for roads, light rail and commuter rail.

Legislators raised no taxes. Voters county by county will decide if their local sales taxes are increased by a quarter-cent for transportation needs.

Special sessions often deal with fixing unintended mistakes made during a general session. But by all accounts, Tuesday's actions make significant changes to the state's income tax and transportation funding systems.

"This will provide tools to improve the state's long-term economic competitiveness and our transportation infrastructure," Gov. Jon Huntsman Jr. said, expressing relief that unfinished business of the 2006 Legislature is finally done. "Now it is time to continue, even redouble, our efforts to make education our single most important priority as a state."

After a few changes, lawmakers adopted a $78 million personal income tax cut over two years. And starting in 2007 Utahns can choose to pay a flat-rate income tax of 5.35 percent with no deductions, under the tax cut/tax reform measure lawmakers approved.

Story continues below
Lawmakers were still trying to figure out exactly how dropping the top tax rate in the current system from 7 percent to 6.98 percent would affect the size of the tax cut for middle-income Utahns.

Sen. Curt Bramble, R-Provo, said every Utah family now can expect to save about $50, with those earning more than approximately $60,000 getting a bigger tax cut. Before Tuesday's tweaks, all married taxpayers filing jointly would have received a $67 tax break. "Every taxpayer will be $50 better off," Bramble said, noting those who will see more "are the folks who pay the majority of the taxes."

Economists estimate 5 percent of taxpayers will pick the new flat-rate option, which overall is a $36 million tax cut. Some wealthy taxpayers may see hundreds, even thousands, of dollars in tax cuts, which grates on some Democratic and Republican lawmakers alike.

Huntsman says the lower flat-rate tax is needed for economic development — thoughts echoed by conservative GOP legislators.

But some lawmakers disagreed, insisting companies are more interested in relocating where they can find an educated workforce and a good quality of life. "People want to go to a place where they feel good about living," Sen. Patrice Arent, D-Murray, said.

Arent, who was among the seven senators — all Democrats — who voted against the income tax bill, also disputed the claim that all taxpayers will see a benefit.

"We're told everyone's a winner," she said. "The schoolchildren in Utah are really the losers here," she said, calling for the money to be spent improving public education rather than on a tax cut.

Comments

You can be the first to comment on this story.

Related content
previousnext

Latest comments

i agree with rick and larry and having ridden with the man previously he...

Obama not a magician

It wasn't "free", somebody had to PAY for it. So how does it feel...

"Hatch also complained, "80 percent of BCS revenue goes to the privileged...

You talking about those little gatherings of people in the country loyal to...

in Blanding sent a text. "Don't pickup beer cans on the reservation, they are...

Pity Conan, NBC execs

Aye, Conan is simply terrible, Im sorry but it pains to watch him, one would...

Obama not a magician

One of my main “problems” is that I try to use my brain to think...

Time for a revolution

Mr. Obama's defenders fail to site policies with which they agree. They fail...

Obama not a magician

Sally in England: Please, just STOP. Conservative's belief in their...

Palin mistreated

At least S. Palin isn't a polygamist and doesn't support them either. We need...

Advertisements