From Deseret News archives:

Will state opt for tax cut on food and income?

Published: Thursday, Feb. 15, 2007 12:08 a.m. MST
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GOP senators have already said they'd be willing go along with the removal of locally imposed, so-called "boutique" taxes from food purchases. Bramble said now they're also going to look at trimming the state sales tax rate.

So, a lower food tax should be part of the overall Legislature's tax package before lawmakers adjourn at midnight Feb. 28.

Clark spent much of Wednesday in the governor's office, using complicated computer modeling to look at "15 to 20" different flat-rate income tax alternatives.

"It was kind of like playing "Deal or No Deal," as you type in alternatives and up pops the numbers," said Clark. Well, maybe a bit like the popular TV game show, but without the beautiful models holding the small silver suitcases with cash rewards inside. "No, (the models) weren't part of it, however," said Clark.

A number of House Republicans have balked at adopting SB223, a flat-rate income tax system with large per-person tax credits pushed by Huntsman and many GOP senators.

SB223 would push 80 percent of Utah income tax filers into the new flat-rate tax system.

But it is also a more volatile tax system. More complicated. And it would leave behind in the old multiple-deduction system large upper-middle income families with big mortgages and charitable contributions.

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House Republicans have harshly criticized SB223, saying it is not real tax reform and should be rejected out of hand.

"We've met with the governor and senators, and they strongly want something like SB223," said House Speaker Greg Curtis, R-Sandy, Wednesday evening. "Hey, at one point they were even talking about the old HB3 — and that brought tears to my eyes. Not that again!" said Curtis. HB3 was Huntsman's old flat-rate income tax plan killed by the House in the final minutes of the 2006 Legislature.

"If we (in the House) will give some love to an income tax compromise, we want the Senate to give some love to removing more of the food (sales) tax," the speaker added.

"We've been holding open caucuses to talk about taxes." The Senate holds closed caucuses and often doesn't even take votes on various tax cut scenarios. "We've put our cards on the table. They are holding their cards close to the vest. We need to all make some compromises," said Curtis.

Senate President John Valentine, R-Orem, said the Senate is "trying everything possible to come up with a rational solution to this otherwise impasse. ... We're flexible." But, Valentine said, it will be hard for the GOP majority to go along with cutting the food tax.

"It's a hard issue for the Senate to flex on," he said. "You've got to give us enough incentive."


E-mail: bbjr@desnews.com; lisa@desnews.com

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