Legislature can do much good with tax surplus

Webb: Utah's brawny economy is spinning off unprecedented levels of tax revenues. Even better, this economy feels solid, unlike the go-go economy of the late '90s, which was built on the shaky dot-com bubble.

In this economy, businesses are profitable, productivity is rising, the promise of technology and the Internet are being fulfilled, and the economy has weathered a war, fear of terrorist attacks, Democratic negativism and pessimism (see below), widespread hurricane damage, and skyrocketing energy prices. What a performance!

And so Utah enjoys billion-dollar tax revenue growth. A good chunk of that must pay for natural growth in state obligations, but at least a couple hundred million dollars is entirely discretionary.

So what to do with it?

Republican House members want to deliver the largest tax cut ever in Utah, around $230 million, a nice election-year benefit (equaling $92 for each of the 2.5 million people in Utah).

As a small-government conservative, I absolutely agree with GOP lawmakers that surplus revenues should not be built into base budgets of state agencies and education entities. Utah government is lean and mean and must stay that way. Once base budgets go up they're nearly impossible to cut, and then trouble is inevitable when an economic downturn occurs.

But cutting taxes isn't the only conservative approach to using the surplus. Another very conservative thing to do is spend the money on capital projects that we absolutely know will have to be built at some point, and at much higher future costs.

That saves future tax dollars, provides the benefits of the projects sooner, and provides a much-appreciated legacy for our children and grandchildren.

Following are some infrastructure projects that, if built now, would save millions of dollars later. The $230 million obviously wouldn't pay for all of them, but it would make a really big dent in some of them, especially if continued over the next few years of expected large surpluses. Ask yourself if you'd prefer a $92 tax cut or to get one or more of these projects going:

• Fix the horrendous northern Utah County traffic congestion, both on I-15 and secondary streets.

• Pay off state bonds to free up future tax resources.

• Build the Mountain View Corridor in west Salt Lake County.

• Widen to four lanes the entire length of U.S. 6, Utah's deadliest highway.