The governor did preserve the deduction for charitable contributions in his plan, but he and his tax experts have said the state couldn't lower the rate to 5 percent and continue to allow unlimited personal deductions and a tax break for mortgage interest.

Adding back the deduction for mortgage interest alone would cost $200 million and push the rate up as high as 5.7 percent, the governor's tax experts have told lawmakers. Bramble said the legislative calculations show otherwise.

Now, Utahns who give money to charities or other nonprofits can deduct 100 percent of that gift from their federal taxable income. Under Huntsman's proposal, that formula would change.

The governor's proposal would require that half of the amount deducted on federal returns be multiplied by 5 percent, with the resulting figure given as a non-refundable credit on state tax returns. The credit would be subtracted from state taxes owed.

For lower-to-moderate-income Utahns, that would actually be a greater benefit than the current system, Huntsman's tax experts say. Bramble said the Legislature's new calculations would apply the same formula to the mortgage interest deduction.

Bramble spoke in favor of the changes to Huntsman's proposal at last Wednesday's task force meeting before the new numbers were available. But Bramble said he is not ready to sign off on it yet.

But he said if the "downsides can be mitigated, it looks OK," especially with the new numbers. The legislative calculations, which Bramble said he was given last Thursday, should help sell a modified version of the governor's plan.

The new numbers come as some key lawmakers are pushing for just lowering the rates on the current income tax system and spreading the brackets — and leaving the deductions already available in place.

The backers of that idea, House Speaker Greg Curtis, R-Sandy, and House Majority Whip Steve Urquhart, R-St. George, said the amount of ultimate tax relief would dictate how low the current 7 percent rate could fall — the greater tax relief given, the lower the rate could become.

At the daylong task force meeting Wednesday, members voted to take four different income tax reform proposals to public hearings later this month, including the governor's plan, of course, as well as a version of it with the debated deductions restored and the idea put forth by Curtis and Urquhart.

The public hearings will look, too, at a pure 4 percent flat-rate tax with no deductions.

Tax Reform Task Force public hearings set

• Oct. 19, 5:30 p.m., W135, West Office Building, state Capitol

• Oct. 25, noon, Western Park, 300 E. 200 South, Vernal

• Oct. 25, 6 p.m., County Commission chambers, 120 E. Main, Price

• Oct. 26, 6 p.m., Dixon Middle School, 750 W. 200 North, Provo

• Oct. 27, noon, Cedar City chambers, Old Post Office, 10 N. Main, Cedar City

• Oct. 27, 6 p.m., County Commission chambers, 197 E. Tabernacle St., St. George

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