Just what package the governor will be pitching remains to be seen, other than he won't force the issue on repealing the corporate income tax. "I'm not going to hold everything else hostage in the name of corporate taxes," he said after the taping.

"If through it all the corporate tax is put on hold, or changed, or taken off altogether, I think what is most important to more people in the state is the former, and that's a flatter, simpler and fairer tax policy."

As far as the impact on economic development of keeping the corporate income tax, Huntsman said that changes to other taxes could still help sell the state to the business community.

"What this does is take a step toward competitiveness," he said, adding that reducing the individual income tax rate to between 4 and 5 percent would help everyone, "not only help those who are starting business, building businesses, looking at moving into the state."

Most Utahns are in the state's top income tax bracket, which is currently 7 percent.

Former Gov. Olene Walker, who kicked off the tax reform effort shortly before leaving office, proposed either a 4 percent flat-tax rate without deductions or a 5 percent rate with deductions.

The governor also said that a new rate should not include any deductions, including for charitable contributions. The Church of Jesus Christ of Latter-day Saints issued a statement in May saying that the deduction should remain.

"I'm not giving in to any level of deductibility at this point," Huntsman told reporters after the taping. "I'm not there yet."

Rep. Chris Cannon, R-Utah, told members of the Tax Reform Task Force Thursday that they should consider repealing the corporate income tax, a move that would distinguish the state because very few states have no corporate income tax. Even if the initial costs looked daunting — estimated at $200 million by fiscal analysts last year — the end result could mean more businesses locating operations in Utah.

"There are some concerns about the loss of revenue, but I think this would actually be a money maker," Cannon said. "If you look closely, you will see how it can make the state more competitive."

Senate President John Valentine, R-Orem, said that the biggest hurdle for repealing the corporate taxes, however, was that loss of significant revenue. Instead, he said that any changes to the laws would probably target Utah-based companies by providing them an alternative tax on sales, while out-of-state corporations would still pay the full corporate tax.

"That's a big part of our school funding, an area where we already struggle," Valentine said about the corporate income tax. "We would have to shift a lot of that burden to individual taxpayers."

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Contributing: Josh Loftin

E-mail: lisa@desnews.com