Utahns split over tax plans

Utahns are split over whether the Legislature should adopt a "dual track" personal income tax system, a new Deseret Morning News/KSL-TV poll shows.

Pollster Dan Jones & Associates asked Utahns several questions about new tax plans being pushed by GOP Gov. Jon Huntsman Jr. and some Republican legislative leaders.

Lawmakers will meet in party caucuses in early September to be briefed on the different tax ideas, which include a sales tax hike in Salt Lake County for mass transit. Most county residents favor such a sales tax hike, Jones found.

If most GOP lawmakers can agree on the plans (Republican leaders say they don't want to have to count on any Democratic votes), Huntsman will call a special session in mid-September where, if they act, taxpayers can get at least a $70 million personal income tax cut in 2006. Legislators could also set up a Salt Lake County vote this November for a $900 million expansion of TRAX, the Utah Transit Authority's light rail system.

Huntsman and GOP legislative leaders may be ready to move on income tax reform. But Utahns are less sure.

In his statewide survey this past week, Jones found that 41 percent of Utahns like the "dual track" income tax system, which includes the current tax system with various deductions — such as for mortgage interest and charitable giving — and a flat-rate income tax with no deductions.

Figuring their taxes both ways, Utahns would then pick the system financially best for them.

However, 36 percent told Jones they don't like the "dual track" system. A relatively large 23 percent didn't know if the state should switch tax systems or not.

Jones also asked if lawmakers should come into a special session to deal with taxes or should they wait until the 2007 Legislature's general session, which starts the third week in January.

While Huntsman and leaders say legislators have been debating the flat-tax alternative for several years and have enough information to make an intelligent decision, nearly 60 percent of Utahns say to wait until the 2007 Legislature.

A third said to go into special session and make the call next month, Jones found. Legislators must act by the end of September if Utahns are to get any kind of income tax cut in the 2006 calendar year.

Lawmakers are looking at four basic options in changing the personal income tax system.

In the 2006 Legislature, lawmakers decided to give $160 million in tax cuts, broken out this way: $70 million income tax cut, $70 million cut in the sales tax on food, and $20 million business tax cut.