The total tax burden for a married Utah couple with three children dipped slightly in 2003, due in large measure to dramatic reductions in federal income taxes.

A new analysis by the Utah Taxpayers Association shows a 1 percent decline in the amount of taxes paid as a percentage of income from 2002 to 2003, changing from 27 percent to 26 percent.

"There is no question federal income taxes have decreased for this type of family," said Mike Jerman, the association's vice president. "Because of the increase in the child tax credit, it has helped immensely."

The analysis looked at the "typical" Utah family of two parents and three children, living in a median-priced home and earning the median Utah wage for a Utah family of five — $55,913. The wage excludes $1,968 paid into a tax-deferred 401K account by the employee and employer.

Jerman warned that the slight alleviation in the total tax burden for certain Utah families will not last forever.

"Taxpayers should assume federal taxes will increase in the future," he said. "Simply based on the persistent deficit spending of the federal government, there should be increases anticipated in federal income tax, Social Security withholding or Medicare withholding."

Jerman also warns that any Utah public policymakers who believe the federal reductions will make it more enticing to levy new state and local taxes need to be cognizant of the grim statistics that remain — Utah is 13th highest in the nation in state and local taxes alone, and when fees are included, Utah's burden ranks No. 3.

The study points out that all Utah married couples enjoyed additional federal relief with the expansion of the tax bracket in 2003.

While formerly the first $14,000 of taxable income for married households was taxed at 15 percent, that changed to 10 percent last year. What that meant, Jerman said, is an additional $700 for all married households, be they rich, middle-income or poor.

Sarah Wilhelm, fiscal analysis director for the advocacy group Utah Issues, said the slight alleviation in the overall tax burden may be good news for many, but Utah's poor deserve a taxation system that is more equitable.

"Even though across the board our tax burden is real high, it is even higher for the low-income. It seems to me we should be thinking of ways to spread the burden out more equitably."

Depending on how you measure, Wilhelm said, the people trapped in the lowest income brackets pay 11.5 percent of their income toward local and state taxes, while those in the top 1 percent pay about 5.5 percent in state and local taxes.

"One of the biggest drivers of this battle over equity is the sales tax right now," she added. "Poor people have to spend everything they have on goods, while others are more likely to spend their money on services."

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