Tax issues may rain on Capitol parade

Webb: With only eight working days left in the legislative session, a lot of the easy decisions have been made, and a handful of tough ones remain — like the size and nature of the tax cut.

The House, Senate and governor have gotten along rather well so far. But tax reform and tax cuts may test the coziness.

Given the size of this year's budget surplus and the nature of Utah's Legislature, a sizable tax cut is inevitable. In my mind, anything over $100 million is sizable. A cut in that range makes sense, along with a healthy boost for public education, as already committed by the governor and legislative leaders.

But after that, most of what's left of the state surplus should be invested in Utah's transportation infrastructure to ensure mobility, good jobs and a vibrant economy for our children and grandchildren.

The Utah Department of Transportation estimates a $16.5 billion transportation funding deficit between now and 2030. Funding for critical I-15 reconstruction in Utah County and the Mountain View Corridor in Salt Lake County has yet to be identified.

Northern Utah County and western Salt Lake County populations are growing so rapidly that highway corridors are choked and a transportation crisis looms. The booming St. George area is also desperate for highway funding.

We need to remember that tax cuts are cumulative. The combined tax cuts of last year and this year could easily top $400 million, meaning the state is passing up $400 million every year, and more if further tax cuts are granted next year.

A portion of that revenue would go a very long way toward closing the $16.5 billion gap and paying for the multibillion-dollar projects on the near horizon.

Spending on infrastructure is safe, conservative, responsible and far-sighted. It doesn't increase agency base budgets, and when the inevitable economic downturn occurs, the one-time spending provides a cushion. It can be eliminated without hurting education, social services, or other permanent programs, helping avoid layoffs and deep program cuts.

A modest tax cut is certainly warranted this year. But the conservative, prudent thing to do with the bulk of what's left is to invest it in Utah's future by paying down the enormous state highway obligations that are staring us in the face, while keeping future revenue in play as a cushion against bad times.

Utah's top business leaders, who aren't fans of taxes, overwhelmingly support this approach because it is so important to the state's economy.