3 tax-reform measures forwarded for study

The "Jones-Mascaro" bill that makes bigger families pay more taxes for public education made it out of committee for the first time in three years Thursday — but it didn't go far.

Substitute HB197, which includes other tax reforms, was forwarded to interim study, along with two other bills proposing tax changes that came before the House Revenue and Taxation Standing Committee.

The others were HB101, sponsored by Rep. Wayne Harper, R-West Jordan, and HB258, sponsored by Rep. David Litvack, D-Salt Lake.

"I'm impressed with what's been done," Rep. Brad Last, R-St. George, said of Substitute HB197 sponsored by Reps. Pat Jones, D-Cottonwood Heights, and Steve Mascaro, R-West Jordan. "Yet we've been in this committee since the beginning of the session looking at all kinds of tax bills. Our general philosophy as a committee is there will be sweeping changes" best studied in the interim, perhaps in a tax task force.

• Substitute HB197 would phase out the per-child tax deduction for families of more than five, raising taxes for larger, wealthier families and cutting them for smaller families earning less than $75,000 a year, sponsors said.

It would expand income tax brackets and give an earned income tax credit, bringing tax breaks to middle- and low-income residents. It would index tax brackets for inflation, and eliminate the state tax deduction for federal tax paid.

The bill is revenue-neutral. But it would allow more money for schools down the road, and reform to a tax system sponsors call regressive.

• HB101 would place a flat income tax rate of 5.9 percent on all residents. Harper calls the concept fair and simple, but said it needs work. The bill would raise taxes for the poor, and cut them for the rich, though perhaps a special tax credit could be extended to lower-income residents, he said.

• HB258 would create a tax credit for people caring for elderly or disabled parents in their homes, Litvack said. The credit would be patterned after the federal child care and expenses tax credit. It aims to reward people for providing home care rather than using more costly government-funded facilities.

The bill could cost the state school fund $3.75 million.

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