Tax hikes? Governor Herbert says nay; business leaders say yay

With Utah legislators facing up to a $1 billion shortfall, the biggest issue in the upcoming legislative session is whether to impose drastic budget cuts or raise taxes by a substantial amount.

Gov. Gary Herbert has taken a hard-line, "Read my lips — no new taxes" position. Why did he so early and so firmly take an unyielding position against tax increases?

Pignanelli: "To tax and to please, no more than to love and be wise, is not given to men."

— Edmund Burke

Taxes are a hot political issue at any time. Now add the current disgust with government in general with Utah's antiquated convention system of selecting nominees, and the result is a volatile reaction from conservative GOP delegates. Herbert knows their mood and he is responding. Any mention of a tax increase will only embolden potential GOP opponents (and Salt Lake County Mayor Peter Corroon). Herbert's approach to taxes will not change … at least until the very end of the legislative session (which conveniently happens about the same time as the filing deadline for political office).

Webb: Herbert apparently believes he can balance the budget without tax increases and without doing serious damage to public education and higher education. Lots of people are scratching their heads over how he will accomplish this. But if he can do it, he will have engineered a major political success.

Herbert lists public and higher education as his No. 2 priority, right behind economic development. He won't be viewed as a champion of education if schoolteachers are laid off, class sizes rise and colleges turn students away and raise tuition dramatically. So it will be interesting to see how Herbert pulls off a miracle when he releases his budget in December.

Many business leaders, especially those on various education and nonprofit boards, are saying the state needs a significant tax increase to avoid disastrous cuts to higher education, public education and other agencies. This puts them somewhat at odds with the governor. Is it counterintuitive that businesspeople would want higher taxes? Why are they leading the charge?