Will Huntsman skip tax cut?

Sources say he'll push for teacher pay boost, uninsured health care

Published: Saturday, Dec. 8, 2007 12:35 a.m. MST
 |  E-MAIL | PRINT | FONT + - 
Gov. Jon Huntsman Jr. will release his recommended 2008-09 state budget next week, and Capitol Hill sources say it will lack something that Huntsman has pushed each year since he took office in 2005 — a general state tax cut.

Huntsman, a Republican, and the GOP super-majorities in the state House and Senate have given significant tax cuts over the past two years — and some "targeted," smaller tax cuts in 2005, Huntsman's first year in office.

Huntsman and lawmakers have "reformed" the state's personal income taxes — giving a tax cut to nearly all Utahns. They have cut the state portion of the sales tax on food by more than half. They've also cut smaller taxes or given specific tax breaks.

Some of those multimillion-dollar general tax cuts won't really be felt by Utahns until this spring, when they pay their 2007 income taxes. On Jan. 1, most Utahns go from an income tax rate of around 7 percent to 5 percent.

With Huntsman seeking re-election in 2008 (he already says he won't seek a third term as governor), and with all 75 House members and half of the 29-member Senate also up for re-election, one could think that Huntsman, much-beloved by citizens as public opinion polls show, might want to suggest another round of tax cuts.

Story continues below

But several legislators are guessing just the opposite, believing that Huntsman will want to spend what new tax revenues there are on his already-announced main goals for 2008 — higher teacher pay, health insurance for the uninsured and improved air quality.

"When I heard of his priorities for next year," said House Minority Leader Brad King, D-Price, an 11-year legislative veteran, "it looked like there wasn't room for a big tax cut."

"That's probably accurate," said House Speaker Greg Curtis, R-Sandy, who has not yet been privately briefed on Huntsman's budget. "We don't want to mess with the (personal) income tax; that reform takes effect Jan. 1. All property tax goes to education" — budgets that are being built up by lawmakers. "And I don't see the Senate cutting any more of the sales tax on food — so there's really nowhere to go" for tax cuts.

While Utah's economy is still booming — even the housing market here has not turned as quickly as in many other states — legislative conservatives worry that if the state spends as much as it will raise next fiscal year, it may have to cut state programs within a year or two or raise taxes if Utah's economy eventually weakens.

As one Capitol Hill wag put it: If Huntsman gets most of his large uninsured health care program — which could well cost a lot of tax dollars — who in their right political mind would vote to cut health insurance for the needy if, or when, state tax revenues turn south in a few years? "And so we'd be faced with a tax increase," he added, just a couple of sessions after the 2008 Legislature gave a considerable tax cut.

Recent comments

Rhino is Funny, This state and Feds have been Repubs for the last...

Goose | Dec. 8, 2007 at 9:36 p.m.

The money is to keep at least a few teachers here.

You don't...

Hey RINO | Dec. 8, 2007 at 7:24 p.m.

I too am disappointed in Governor Huntsman and others who say one...

INTERESTED GREAT GRANDMOTHER | Dec. 8, 2007 at 5:35 p.m.

previousnext

Latest comments

BYU football: 2010 commitments

While reading most of the comments by the fans of BYU and Utah, one could say...

It's going to be funny in 20 years when all this seems stupid, and you are on...

When I can finally establish in every moment of my life peace, forgiveness,...

Same can be said about the beauty parlor, or any other place where we shed...

Reading all of this makes my heart wrench. I was raised LDS and I have been...

I'm sick of the articles saying he's like every other man with temptations....

2 men cited in trespassing on LDS plaza

To the 7:04 commentator, They are also married. Beyound that, what...

lets go dig it up they're not indeginous to here or related to us. but i...

That is a terrible lead! When did this happen? What does this picture from 10...

"Who are you calling a pedophile? While I do believe Mr. Pratt is guilty of a...

Advertisements