From Deseret News archives:
Tax reform will cause woes as economy sours
The world is awash in bad debts; the financial newspapers have been describing this as an era of highly unstable trading markets on an international scale not unlike the beginnings of the Great Depression.
Personally, I find it necessary to keep abreast of this type of news, because of my concern about our recent Utah income-tax reform and the long-term impact on taxpayers and public education. I think we've got significant problems that need to be addressed (go to www.utahtax.org).
Problem 1: For decades we've been taxing nearly all workers at one rate 7 percent. Raising public education funding in this fashion has damaged our social fabric by pitting taxpayers against schoolteachers, childless couples and retirees against families with children. Recent reforms still tax average workers at a single rate, 6.3 percent, a tax reduction, yes, but with a real cost to improving public education.
Problem 3: When times were good, legislators cut taxes instead of saving the surpluses in our Education Rainy Day Fund. Now in lean years, teachers and staff will be faced with funding insecurity.
Problem 4: Approximately 100,000 taxpayers, many retired or families with moderate incomes, will actually pay more rather than less income tax next year because of the new reforms.
Problem 5: Over the past four years, Utah's wealthiest 1 percent reaped huge financial gains and naturally paid more income tax (thus creating surpluses). Our GOP leadership felt their pain and rushed in to lower the top tax rate. Yet decades have passed where the middle class has wrongfully been moved into the upper tax rate without similar tax relief.
I find it ironic that we have an income-tax policy called a "5 percent single-rate" policy when in fact, there are actually two rates, and the higher tax rate, 6.3 percent, applies to the average worker.
Had legislators properly understood these problems, they could have used a multiple tax rate policy. This would have provided more substantial tax relief ($500 tax cut) to the moderate-income taxpayer and also protected our public school funds. The current single-rate income tax policy does neither.
Matthew Frandsen, an engineer, ran in House District 8 in Weber County.
Recent comments
what do you mean last in the nation? Our students test near the top....
@anonymous 9:31 | March 5, 2008 at 2:11 p.m.
There should never have been tax cuts. Our schools are suffering...
Anonymous | March 5, 2008 at 9:31 a.m.
Frandsen's criticism of the phase-out credit is interesting since the...
Anonymous | March 5, 2008 at 8:23 a.m.
- Boyle's album tops Britain's charts 12:35 p.m.
- Woods says accident 'my fault' 12:28 p.m.
- Preventing small plane crashes 12:13 p.m.
- Giving heart to women who exercise 11:55 a.m.
- 4 police officers shot dead in Wash. 11:50 a.m.
- Leno losing his audience to DVR 11:43 a.m.
- Northeast scallopers decry cuts 11:29 a.m.
- $ needed to ease U.N. climate deal 11:17 a.m.
- Sen.: Troop hike must help forces 11:12 a.m.
- 'New Moon' keeps top box office spot 11:05 a.m.
- Hall mouths off about hate of Utah
- Cougars beat Utes in overtime
- BYU is champion of the state
- Cave to be sealed with body inside
- Credit Coug defense for win
- Cougar defense rose to occasion
- Field goals, penalties doomed Utes
- Jones' joy for life remembered
- Banged up Jazz get best of Blazers
- Man dies in dirt bike crash
- Cougars beat Utes in overtime
439 - Hall mouths off about hate of Utah
395 - Thunder rolls by Jazz
136 - Man trapped in Nutty Putty cave dies
116 - Cave to be sealed with body inside
115 - Editorial: Poor welcome for Palin
113 - Rivalry Week is highly profane
89 - BYU is champion of the state
88 - Hall's legacy measured today
76 - Y. focused on 10-win season
73
You can rest easy, knowing that your school is one of the top 5 most hated...
A common trait of the guilty is to deflect blame away from themselves. It...
Um, which team had by far more personal fouls? Utah Which team's...
I am glad you said what you said Max, I have hated the Utes for years. (I...
I just "hate" those darn, fetchin' Utes! Good luck in the NFL. Doh!
Way to go Hall! I couldn't agree more. Nice to hear someone tell it like it...
Clearly Max Hall does not hate any one individual. He, like many many others...
The Jazz never have any problems winning at home, it's when they go on the...
Thank you Max Hall for bringing this subject to the media. Utah's bad...
like the people who throw beer, and of course, Max Hall himself, spoil the...

