Typical family to get tax refund

Published: Monday, July 6, 2009 1:06 p.m. MDT
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For all the complaining some Republican Utah politicians do about federal taxation, a new study finds an amazing fact: The typical Utah family — which will make just over $63,000 for 2009 — will actually get a federal tax refund in April 2010.

That's right, that typical family — a married couple with three children — will get $356 back from the federal government, not paying any federal income tax at all, the Utah Taxpayers Association says in a new study on tax burdens in the Beehive State.

And for heavily Republican Utah, the check comes because of President Barack Obama and congressional Democrats' federal stimulus package, which also includes a middle America tax cut via the Making Work Pay tax credit.

But, warns association vice president Royce Van Tassell, "while there may be short-term gains" in a federal income tax refund for many Utahns, "our children and grandchildren will be paying higher taxes because of the burgeoning federal budget deficit — spending the world has never seen before."

The association is a business-backed nonprofit run by state Sen. Howard Stephensen, R-Draper, who in his political life has little good to say about Congress, controlled by Democrats, or Obama.

The study's main theme details the current federal, state and local tax burden under which Utahns suffer.

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The study shows that, including some "taxes" that Utahns rarely see, the median-income family is taxed at 24.2 percent of its "income."

But that tax burden includes some "taxes" and "income" that you may not consider in paying your taxes. The taxpayers association says it is routine for economists to include those items in any family's tax burden compilation.

For example, while you don't see it on your pay stub (and it is not figured into your federal taxable income), the study includes as part of your income your employer's share of Social Security and Medicare taxes and your employer's unemployment insurance costs.

The study also includes federal and state liquor and tobacco taxes (called excise taxes). And because many Utahns don't drink alcohol or smoke, they don't pay those taxes, which equal $306 for 2009, the study says.

The study also makes some assumptions about the mileage your car gets per gallon and how far you drive each year.

If you drive more or drive a gas-guzzler, then you would be paying more in gasoline taxes. If you drive less or drive a hybrid, you would pay less.

And, of course, the study assumes that you are married and have three children and live in the average priced Utah house, a dwelling worth $231,500.

Singles and couples with no kids residing at home, or who have a more expensive home, would pay more taxes, too.

Still, the study is a good landmark, taxpayers association officials say, to measure how the median income family (a median number falls in the middle of a sample, with as many numbers above as below it) fairs in taxes paid from year to year.

The taxpayers association report can be seen at utahtaxpayers.org.

E-MAIL: bbjr@desnews.com

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