The sponsor of the bill, Sen. Wayne Niederhauser, R-Sandy, said that change was made to give middle-income taxpayers an even bigger break. "I think we've got overwhelming support for the bill," Niederhauser said.

The new tax system will replace the "dual track" system put in place by lawmakers last year. That system, which taxpayers will use to calculate their 2007 returns, allows them to choose between the current system and a "flatter" rate option sought by the governor.

Huntsman said the new, single option that takes effect in the 2008 tax year, will be the end of his income tax reform effort because it meets his goal of a "fairer, flatter and simpler" system. The governor, who has made economic development a priority for his administration, believes that lowering the top income tax rate to 5 percent will attract more business to the state.

The new single income tax system also takes into account concerns over moving to a flat-rate system about losing deductions for charitable contributions and home mortgages. Those now become part of the formula for tax credits.

The tax cut, described as the largest-ever in the state's history, comes during a time of record surpluses. Lawmakers started the session with an extra $1.6 billion to spend, an amount that grew by another $149 million after revenue estimates were updated.

Some lawmakers are already warning the good times won't last forever.

Senate President John Valentine, R-Orem, said he never again expects to have so much extra cash. But Valentine said the tax cuts were sized so they wouldn't have to be scaled back when the state's economy stops growing so fast.

"We are going to have a slowdown," he said. "We're already seeing that nationally."

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