Tax reform key to future, Huntsman says

CEDAR CITY — Utah Gov. Jon Huntsman Jr. said Friday at a conference here that the state must reform its tax structure if it is to remain competitive.

"My whole thesis of life as governor is for Utahns to be able to live their dreams," the governor told more than 200 people attending the 19th Utah Rural Summit on the campus of Southern Utah University. "That means you either have the right environment for that to happen, or you don't. We don't want people moving to other states to pursue their dreams."

Arizona just passed a 10 percent across-the-board tax cut to be more competitive, and New Mexico recently changed its income-tax structure from just over 9 percent to about 5 percent, he noted.

"Take a look at the neighborhood that we live in," Huntsman said. "Part of the freedom equation includes tax reform. If capital doesn't find a safe harbor here, it'll go somewhere else."

Another element of the "right environment" includes a well-educated population, with children who are literate by the third grade, he added. Being ready, willing and able to take advantage of new technologies is also critical for Utah companies to stay competitive. And the state's marketing efforts in tourism and international trade relations are beginning to pay off, the governor said.

"In this state today, we can live any way we want and can find the economic sustenance to pay for that lifestyle," Huntsman said. "There is no reason for any community to die on the vine in this state. You can be competitive anywhere by using the Internet."

The governor urged the audience of rural leaders and public employees to work with his office to maximize their chances of success. "If you want to work together, we can make it happen," Huntsman said.

The two-day conference also featured a a surprise morning visit by U.S. Health and Human Services Secretary and former Utah Gov. Mike Leavitt. Breakout sessions on Friday included discussions on rural growth, public land issues and the unveiling of an initiative aimed at educating Utahns to buy local first.

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