Residents get their say on tax reforms

PROVO — Residents were moved to the top of the pecking order Wednesday night at a public hearing about proposed tax reforms.

And they're hoping that's where they'll be when the Tax Reform Task Force makes its decisions.

Because the first two public hearings on proposed tax reform had been dominated by city officials worried about losing sales-tax revenue, members of the task force encouraged those who pay taxes — not those who spend tax money — to share their thoughts.

"In health care, we have a rule: First, do no harm," said health care executive Dean Sanpei of Provo. "To (the Tax Reform Task Force), I would say the No. 1 rule should be: First, raise no taxes — specifically individual income taxes."

Like Sanpei, the majority of residents who spoke Wednesday night at Dixon Middle School wanted to know how each of the four options for individual income tax reform would affect them personally.

"The average person can't vote to give themselves a raise," said Cindy Glover of South Jordan.

Sanpei asked the task force if it was favoring any of the four plans:

• Gov. Jon Huntsman Jr.'s plan, which starts at the federal Adjusted Gross Income, provides certain exemptions that phase out as a taxpayer's income increases, applies a tax rate of 5 percent and allows a credit for charitable contributions.

• A modified version of the governor's plan, which eliminates a personal exemption (family size) cap and provides a mortgage interest credit.

• The plan submitted by House Majority Whip Steve Urquhart, R-St. George, and House Speaker Greg Curtis, R-Sandy, which retains the existing tax structure and reduces the top rate from 7 percent to 6.85 percent.

• A plan from Rep. John Dougall, R-Highland, which starts with the federal AGI and applies a flat 4 percent rate. The plan also calls for a sales-tax refund that varies with income and increases the state sales and use tax rate to 5.5 percent.

"We have not made any final decisions," said Sen. Curt Bramble, R-Provo, co-chairman of the Tax Reform Task Force.

Grover asked the task force to make sure the option it settles on include a tax deduction for charitable contributions. She cited the recent destruction caused by hurricanes Katrina and Rita and the need for such charitable donations they created.