Comments about ‘Utah Legislature: Democrats suggest repealing tax exemptions’

Wow, finally someone is making some sense at the Legislature.

Tough times call for tough measures. Balancing a budget can be painful, particularly if the budget has been allowed to get way out of hand. I just hope that those in the legislator will look at some of their own spending habits (spending that directly benefits them), and make appropriate cuts.

Why some special interest recieve money and some don't.

and $10,000 to donate to the right campaign funds could get you one of these tax exemptions too!. Why the complaining? Most taxpayers pay their fair share only at tax time. These brave souls are paying their fair share a bit early and reaping the rewards.

The solution to the gap between state revenues and expenditures is very workable. Here is the solution. We either need to rework the "use tax" or develop a better way of collecting taxes on interstate commerce. Not collecting taxes on interstate commerce is leaving money on the table. It is within the right of the state to collect a tax on goods purchased within Utah. We need to redefine and clearly articulate that if the sellers point of operation is in Utah and the communications leading up to the purchase occurred on an IP address originating Utah or a phone number listed within Utah, that sale is taxable. Further, all commercial services sold needs to taxed at the rate of 6.8% just like goods. The tax models being used today were created when services were a relatively small portion of the economy. It obviously did not take into account the ease of interstate commerce that has occurred with the internet. A standardized 6.8% on every transaction with the exemption for unprepared food is the revenue cash cow to balance budgets not only in Utah but every state the Union.

Unfortunately, John Kateel, states' power to tax interstate commerce is virtually non-existent. The Commerce Clause of the U.S. Constitution forbids any activity by states that would burden interstate commerce.

Ace,

What John is proposing is very similar to what other states have done or are now doing. Internet sales tax fairness is good proposal to collect revenues on goods and services that are sold to Utah customers, that they should be claiming on their Utah tax forms each year, but are not. New York and other states have already imposed this sales tax, Colorado is currently voting on the legislation and New Mexico is looking at doing the same. Imposing these sales taxes would increase revenue for the state and increase parity between these internet giants and local businesses.

Speaking only for myself, there are plenty of e-tailers that provide the goods that I consume on a regular basis. By forcing e-tailers here to collect a tax you are driving people who would prefer to keep purchases in-state to out of state sources. A 6.8% tax is high enough to make me look at other sources that dont charge a sales tax.

thank you Cincinnatus. The Commerce Clause of the Constitution does not specifically forbid the taxation of goods or services by a particular state for goods or services originating out of that particular state in question. From a tax collections point of view, it is much easier to audit and monitor the behavior of a seller than a buyer. Building the tax in at the point of sale is much easier to tolerate than it would be to ask a buyer to gather their yearly out of state purchases which would have been taxable and then submit payment. We already have a system in place to collect sales taxes on a quarterly basis. We would collect vastly more taxes without fundamentally changing the system. Secondly businesses can earn interest on the taxes that they collect and then set aside for payment every quarter. Depending upon revenue this would be huge.

From a legal standpoint, a purchase from an e-tailer or even an Ebay seller is supposed to be reported and then taxed via the "USE TAX" form. This is the law, but since the enforcement of this law is so cumbersome, it is rarely if ever enforced. Now that we are debating all sorts of government tightening remedies such as not having the 12th grade, to reduced bus service, to paroling more prisoners, getting rid of the antiquated use tax and instilling a more efficient sales tax mechanism would make sense.

The recently enacted flat tax benefits mostly those people who have a high income and don't need this benefit.

The middle income people who do benefit from it benefit very little.

The state ought to take a cue from the federal government and make it so those with incomes over $200,000, not eligible.

Do this at least temporarily, until the budget crisis is over.

Or repeal it permanently and do away with the food tax. The tax that hits people the hardest who can least afford it.

There is no evidence that this flat tax will attract any business to the state. A night life would, excellent education would, skiing and the outdoor life does.

When I-Omega left, the CEO mentioned Utah's liquor laws as one reason for leaving. He didn't mention the income tax.

Before we get rid of the 12th grade, lets get rid of the pay of the legislature.

I don't want to get rid of either, but if we have to get rid of one, lets get rid of both.

Only then can we know for certain that times are indeed really that tough that drastic measures REALLY ARE necessary.

Do you think raising taxes on businesses (or removing exemptions we used to attract these businesses to Utah) will be a boon to the job seaker? Or will it just be good for the DemoGog who thinks the solution to EVERYTHING is collecting more taxes?


What obviously happens when you make your tax structure more hostile towards businesses that hire Utahns??? If possible, they relocate those businesses and those JOBS to ANOTHER State that has LOWER taxes.

Is this a suprise to ANYONE???


What has happend in New Jersey since they raised their taxes? Studies showed that people with wealth, business owners, businesses and Jobs, LEFT the State to find State. So how is that GOOD for the state? Their taxes collected have also gone WAY down (because the businesses and people they USED to be able to tax at the lower rate are not GONE).

Just something for the legislature to think about.

You need to check out the state budget a little more. We do not have a spending problem in our state, we have a revenue problem. We've managed our budget well for a very long time. We're the best managed state in the nation, and all that. At some point you can't cut anymore and have to make hard choices, and this is not an entirely bad idea.