Utah GOP leaders push tax cut plans

Republican state leaders are putting forward new income-tax reform and tax-cut proposals that could drop 20 percent of taxpayers from the state tax rolls completely and spread out a $115 million tax cut across the board.

There are no losers who would pay more under the new plans, said Rep. Wayne Harper, R-West Jordan, on Monday.

"There are only some big winners — and those are mostly low-income Utahns," said Harper, co-chairman of the Legislature's main tax-writing committee.

"We are very pleased that interest in these new plans is coming together," said Mike Mower, spokesman for Gov. Jon Huntsman Jr. "There is a lot of momentum" for them.

The Legislature's Revenue and Taxation Committee plans to discuss several new tax-reform proposals on Wednesday, said committee co-chairman Sen. Curt Bramble, R-Provo.

One new proposal has been drafted by Huntsman. The other, a slight variation from the governor's new plan, is being put forward by Harper, Rep. John Dougall, R-Highland, and other GOP House leaders.

Can there be enough agreement so that a special legislative session can be called by the governor this year, in time to give a significant income-tax cut in 2006?

"That's what we're working toward," Harper said Monday. "I think there will be significant support in the House and Senate, from Republicans and Democrats alike, once this is explained and studied."

"If there can be general agreement on which way to go, the governor is very open to calling a special session" before the Legislature convenes in the 2007 general session in January, said Mower.

Harper said he didn't know how many low-income Utahns would soon be paying nothing under the "dual income-tax system."

"But I think we could drop as many as 20 percent to 25 percent of people" from the income-tax rolls, he said.

That should get some Democrat votes, GOP leaders hope. Since Republicans hold the governorship and more than two-thirds majorities in both the House and Senate, they don't need Democratic approval. But a bipartisan tax reform would look better, leaders said.

Bramble, a certified public accountant, said over the last month, legislative GOP leaders and Huntsman have been discussing various kinds of tax reform based on the idea of a dual personal income-tax system, originally floated in late spring.

"With the change of just a few lines in the current tax form," said Bramble, Utahns could figure their taxes two different ways. Taxpayers would then pick the option that saved them the most money.