From Deseret News archives:

'More Santa than Scrooge': Huntsman's budget buoyed by surpluses, growth

Published: Friday, Dec. 9, 2005 11:30 p.m. MST
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While they may not agree with how to remove the sales tax on food, the governor, Senate and House leaders all seem committed to removing or at least reducing the tax this year.

Huntsman said he's "very, very confident" that eventually, the tax will be gone. "There should be enough momentum to get that done," he said. But the governor made it clear he isn't leaning toward any particular proposal.

His budget only sets aside $37 million toward dealing with the hated tax, just a portion of the $160 million price tag for completely removing it. Huntsman acknowledged it could take more than a single session to do away with the tax, but he wouldn't commit to a time line.

"I'm open to ideas," the governor said, noting that he had little support from political leaders when he campaigned on the issue. Now, he said, everyone seem to be looking for a way to eliminate the tax.

One proposal is to continue charging sales tax on food but eventually give most if not all Utah taxpayers — not just those who don't make much money — a credit on their state income tax for what they spend on food.

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According to information supplied by the state Office of Legislative Research and General Counsel, a family of four earning between $50,000 and $70,000 pays $305 annually in food taxes. Poorer families typically pay less and those who are wealthier, more.

Giving a credit would solve one of the biggest political problems associated with eliminating the food tax by allowing local governments to keep their share. Plus tourists wouldn't get any of their food taxes back.

Senate President John Valentine, R-Orem, said such a credit would make it easy to phase in the tax break over several years. "We could make a down payment on it, either at the governor's level or at some other level," Valentine said.

The Senate leader had supported taking the sales tax off food entirely, but, even with the big surplus, has started to suggest a more cautious approach. Valentine said he worries "about the volatility of some of these very large revenues."

House leaders may be the difference-makers, which is not surprising, considering that they were the ones who brought the issue out of the Tax Reform Task Force. They also are making the more aggressive proposal. Earlier this week, House Speaker Greg Curtis, R-Sandy, said that he preferred $100 million in tax cuts, with $80 million committed to start a two-year phase-out of the food tax.

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Gov. Jon Huntsman Jr. answers questions about budget Friday at Capitol.

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