From Deseret News archives:
5% single-rate tax likely
- Page:
- < Previous
- 1
- 2
- 3
A few GOP lawmakers were also concerned about what the mortgage industry would think of the new tax plan and how LDS Church officials would respond to it.
More than a year ago, leaders of The Church of Jesus Christ of Latter-day Saints said that any tax reform in Utah should keep the charitable deduction in place.
After a further-reformed Huntsman plan that didn't give direct deductions for charitable giving was introduced at the first of the 2007 Legislature, the Deseret Morning News asked church public relations officials if church leaders' stand had changed considering that the alternative didn't give direct deductions for charitable giving.
Church leaders just reiterated their previous warnings, but didn't oppose the plan.
The plan presented Thursday does include home mortgage interest and charitable giving in a "tax credit" formula.
A person's tax credit would be 6 percent of either the standard federal deduction or 6 percent of the itemized deductions.
As is now the case, however, a family would have to itemize its returns, and not take standard deductions, to get the most benefit out of mortgage interest paid and charitable giving.
For those "purists" in the House GOP who really wanted a flat-rate based income tax system, Huntsman's new plan kills that opportunity.
But, said Curtis, to just lower a true flat rate tax system to 5 percent would take $500 million out of the state's public/higher educations budgets and give by far most of that huge tax cut to higher-income Utahns something no one really wants to do.
Through his latest plan, Huntsman gets a 5 percent rate a two-year goal of the governor who says that rate makes Utah competitive with surrounding states' top income tax rates.
Valentine said there's still an "elegance" to the new proposal, because it recognizes larger families and preserves credit for mortgage deductions and charitable contribution, although the credit phases out depending on income level and filing status.
Not all are sold, however.
"Phasing out the tax credits," said Rep. Jim Dunnigan, R-Taylorsville, "completely changes the ball game." Middle-income Utahns would not see the same percentage of income tax cuts as some other groups, he maintained.
Huntsman's earlier income tax plan would result in middle-income Utahns "taking it in the shorts" because they wouldn't get much tax relief, Dunnigan said several weeks ago.
A chart accompanying Thursday's discussions shows that on average, a family making $40,000 a year would get a $100 tax cut while a family making $100,000 a year would get a $200 tax cut.
E-mail: bbjr@desnews.com; lisa@desnews.com
- Page:
- < Previous
- 1
- 2
- 3
Comments
Income tax reform overview PDF document from the Utah Legislature.
Requires Adobe Reader.
- Sister recounts brother's death 9:47 p.m.
- Suh wins Lombardi Award 9:46 p.m.
- Gonzaga coasts against D-III school 9:45 p.m.
- Byfuglien scores winner for Chicago 9:38 p.m.
- Ariza, Brooks lead Rockets 9:36 p.m.
- Spurs' Jefferson ends slump 9:35 p.m.
- NFL notes: Reid agrees to extension 9:28 p.m.
- House debates bank oversight 9:27 p.m.
- Casual sex not always bad for health? 9:27 p.m.
- Obama to note Peace Prize irony 9:26 p.m.
- Hot Rod behind mic for Lakers
- Cougars use depth to beat ASU
- Max Hall wants to look ahead
- Non-BCS schools not given fair shot
- Panel passes BCS playoff bill
- Psychologist: Mitchell schizophrenic
- Palin signs books, chats with fans
- Small plane crashes near Lehi
- Snow brings big chill
- Jazz go up against 'the best'
- Letters: Global warming a lie
228 - TCU to play Boise in Fiesta Bowl
206 - BYU football: Bronco weighs in on Hall
178 - Cougars going back to Vegas
150 - Utah/BYU rivalry can be more civil
147 - Andersen apologizes for Jordan hoax
138 - George lost in rivalry hatefest
121 - Max Hall wants to look ahead
119 - Ed Smart 'appalled' at testimony
100 - Revive full food tax?
99
Love him or hate him, Utah Sen. Orrin Hatch knows how to get attention.
Sen. Scott Jenkins was name-checked by Jay Leno Monday night during his...
I agree with the atmosphere, thats awesome.
Bill Fullmer is the kind of man that any person would want as a father,...
Nice to see he's back. Now if he could only do the kicking instead of...
Todd: Not sure what to make of the above comment. Maybe i'm just not reading...
I have been following this project for quite some time! Glad Provo Rivers...
When I grow up I want to be like Jared! The world needs real Super Heros...
"I can't wait for our nation to join the civilized world in covering all of...
Bush cut taxes for the rich and nothing trickled down. We deregulated and our...
Good game Utes! A good win by double digits! Keep them coming this week1...
"I think there should be more flexibility given, not just to charter schools,...



You can be the first to comment on this story.