TAX CUTS COMING AND GOING ON UTAH HILL
BUT BANGERTER WILL MAKE KNOWN HIS PREFERENCE EARLY NEXT WEEK

It's political hocus pocus: Now you see a tax cut, now you don't.

The Senate, which earlier this session passed a bill cutting the income tax, Friday voted down the same measure. And House Democrats, who filibustered long and hard against a cut in the sales tax, turned around and voted for the measure.All of which left more than a few lawmakers scratching their heads and wondering just what in the Sam-Capitol-Hill is going on.

Republican Gov. Norm Bangerter isn't confused. As a former House speaker, Bangerter said Friday he knows from experience that decisions - including tax-cutting measures - will be made as the Legislature rushes to a close at midnight Wednesday.

Early next week, maybe Monday, Bangerter promised to make known which tax cut he wants - sales tax, income tax deductions or even property tax. While he continues to recommend a $19 million tax decrease to legislators, the governor so far hasn't backed any specific proposal.

House Democrats filibustered almost three hours Friday, opposing a bill that would cut the sales tax rate by one-fourth cent on the dollar. They argued that the $19 million available for tax cuts could better be "invested" in the state's School Trust Fund, where it would generate about $2 million a year in interest for public schools.

But when it came time to vote, many of those Democrats - including House Minority Leader Mike Dmi-trich, D-Price - sided with Republicans to pass the measure by a 53-21 count.

Meanwhile, senators killed an income tax cut by a 14-15 vote. But sponsor Sen. K.S. Cornaby, R-Salt Lake, said later Friday that he's persuaded "some wayward Republicans" to join him. He'll bring SB102 back Monday morning and pass it over to the House, he said.

Cornaby's bill would increase the deduction for federal income tax paid on state returns from one-third to one-half. That equates to a $19 million to $20 million reduction in state revenues.

House Republicans, with four exceptions, voted in favor of the HB36, a sales tax reduction that supporters say will "keep faith with the people of Utah."

The real courage is not raising the sales tax in times of need, said Rep. Frank Knowlton, R-Layton. Courage is lowering it when times are good.

Before voting for the bill, Dmitrich led off the attack against the tax-cutting plan, calling it shortsighted and premature.