From Deseret News archives:

Tax cut? No thanks, Utahns say

Poll shows people want surplus to go to services

Published: Saturday, June 18, 2005 10:18 p.m. MDT
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In addition, various Tax Reform Task Force members have talked about restructuring the corporate income tax to cut taxes by maybe $50 million or $80 million a year. And they've discussed eliminating one of the gross receipts taxes on big electrical generators, cutting their taxes by upward of $13 million a year.

But Kikuchi said Huntsman, who has advocated eliminating the corporate income tax as a means of economic development, doesn't favor cutting any other general taxes as part of the reform effort.

"It's too early. We want revenue-neutral tax reform," meaning that as taxes are raised or reduced on this or that section of society in the reform effort, overall the state would take in roughly the same amount of cash next year.

"And the tax reform effort should take into account" any higher tax collections, she said.

"Right now we can't look into a crystal ball and see" how taxes may come in six months or a year. "We don't know if we'll see these" tax surpluses in the near future, Kikuchi said.

True, said Curtis. "And it's amazing how tax revenues can ebb and flow. We'll have to wait until the December revenue estimates" used to begin the state's yearly budgeting process. "But it's getting closer and closer" to a level of extra tax revenue where tax cuts must be considered, the speaker said.

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Huntsman, a Republican who doesn't face re-election until 2008, is politically safe to keep his extra taxes, at least for now, the poll shows.

Jones found that Democrats greatly favor spending the extra money on state programs, with 82 percent favoring that option over tax cuts.

But even most of those who told Jones they are Republicans want the extra taxes spent on state needs, not returned next year in lower taxes. Fifty-six percent of Republicans say "no" to tax cuts.

All 75 House members and half of the 29 senators face re-election next year, and tax cuts in February may be remembered by voters in November 2006. Historically, tax cuts have come in legislative election years.

When lawmakers got an update on burgeoning surpluses last month, House Minority Leader Ralph Becker, D-Salt Lake, said there are a number of areas that are currently being underfunded.

Just one example, said Becker, is in public education testing, where school administrators and teachers need help to bring up basic levels of math, science and other critical areas.



E-mail: bbjr@desnews.com

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