Salt Lake Chamber backing 'dual track' tax plan

The Salt Lake Chamber came out Friday in support of the governor's "dual track" income-tax plan, just days before a decision will be made whether state legislators will consider the plan in a special session.

It was the first time the pro-business group had even mentioned the tax-reform plan being pushed by Gov. Jon Huntsman Jr., which would give Utahns a $70 million income-tax cut and eventually allow taxpayers the option of paying a flat tax rate by bypassing the usual deductions.

The chamber has been lobbying since June for a special session to authorize placing a sales-tax hike question on the November ballot in Salt Lake County. Revenue from that would pay for more than $900 million in mass-transit and road-improvement projects.

The governor, along with legislative leaders, wants to see both the "dual track" income-tax plan and the chamber's transit tax on a special session agenda. On Tuesday, the majority GOP House and Senate members will caucus to determine if there's enough support.

Huntsman, who has spent the week pitching both tax issues to lawmakers throughout the state, is expecting to call a special session in mid-September, his spokesman, Mike Mower, said Friday.

"We feel that once people get a chance to understand what's been going on and see the numbers, support continues to build," Mower said, adding that the chamber's announcement was appreciated.

Chamber President Lane Beattie said Friday that both the dual tax system and sales-tax hike for transit would help stimulate Utah's economy. "These issues truly go together," he said. Waiting on either issue will end up costing taxpayers money, he said.

The Salt Lake County Council has already put a property-tax increase on the ballot to pay for an expansion of TRAX. But supporters of the mass-transit projects prefer the sales-tax option, which voters also seem to like better. But the option requires legislative action.

If money isn't raised for the transit projects at the polls in November, construction would be delayed and costs would increase. Chamber leaders said there are other options, but those, too, would cause expensive delays.

Beattie said income-tax reform would help boost economic development "by attracting new companies and talented workers to Utah." With the proposed 5.3 percent flat-rate option, Utah would be competitive with other Western states, he said.