GOP legislators ready to offer a big tax cut

Utahns will get a big tax cut this year, whether they really want it or not.

As of the deadline for this column, GOP legislators — who hold two-thirds majorities in both the House and Senate — are looking at tax cuts in the neighborhood of $200 million.

If taxes are finally cut by that amount, it would be the largest single tax cut in the state's history.

But few people seem excited about it.

Maybe part of that comes because legislators and Gov. Jon Huntsman Jr. gave a $180 million tax cut last year. Ho hum, another tax cut.

Maybe $200 million doesn't sound like much considering lawmakers have an extra $1.6 billion in one-time and ongoing tax revenue surpluses this year. (That's only 12.5 percent of the surplus.)

A few GOP lawmakers are already worrying that citizens won't actually feel the tax cuts, despite all the public fighting in the Legislature.

Part of the tax cut will come in personal income taxes (that much appears to be decided by the Republicans). And with Utah's economy really cooking, many workers will make more money in 2007 than they did in 2006, and so will pay more income tax even with the tax cuts.

GOP House members want to further reduce the sales tax on food. Utahns want the food tax cut, polls show. But, again, will they notice it at the grocery store, where what you buy and how much you buy makes it hard to track a sales tax cut.

Freshman Rep. Kay McIff, R-Richfield, warns that if legislators cut the food sales tax, it will be almost impossible to raise the food tax later. So he argues for a tiny reduction in the overall sales tax, because that tax could be increased slightly to regain tens of millions of dollars should a financial crisis hit the state. But almost assuredly a tiny reduction in the overall sales tax wouldn't be felt at all by Utahns.

Finally, Democratic legislators are saying there are so many critical needs, like public and higher education and Human Services, that it's silly to give a big tax cut for which Utahns are not clamoring.

The 104 part-time legislators often say they struggle in anonymity. Few of their constituents really know who they are, public opinion polls show.

When in session, it sometimes feels like open hunting season on lawmakers by the media and special-interest groups unhappy with state policy or spending.

A herd mentality takes over, with few legislators willing to stand up for unpopular issues.