Arguments to change the Utah tax code
RINGS TRUE Coalition arguments for a change in Utah's personal income tax system:
• The GOP accountants designed and crafted a single rate income tax structure, where 80 percent of all taxpayers actually are being taxed at 6.3 percent so that a few at the highest income levels could enjoy significant tax savings.
• Currently, the top 5 percent of income earners will get sizable tax cuts and the top 1 percent of earners will see even greater tax cuts.
• Currently, Utah's wealthiest 1 percent pay only 4.6 percent not even the touted 5 percent effective rate cap as provided in statute.
• The income tax cuts for Utah's wealthiest 1 percent equates to an estimated loss of $50 million every year from public schools.
• The result will be that many seniors and low-income filers next year will pay higher rates, being reassigned to higher marginal tax rates.
• The initiative, Single Rate Income Tax Repeal and Graduated Tax Rates Revision, restores transparency.
• The initiative offers a simple solution to the old problem: It gives the traditional income tax rates of 2 percent, 3 percent, 4 percent, 5 percent, 6 percent, 7 percent an overdue 35-year face-lift and produces a new 3 percent, 4 percent, 5 percent, 6 percent, 7 percent, 8 percent system. Thus, more of your income will be taxed at lower rates.
• The initiative incorporates all current tax code credits but will structure them as tax deductions instead.
• The bottom 70 percent of citizen income earners will receive sizable tax cuts.
• The result will be tax refunds for almost 350,000 married and 235,000 single tax filers.
• The initiative removes higher tax bracket creep provisions of old tax code, recalculating the figures on the consumer price index.
• The initiative regains lower effective tax rates: 25 percent for the median married filer and 50 percent for the median single filer.
• The initiative is projected to increase school funding by 5 percent even in this recession, instead of using Rainy Day funds.
• The initiative's top tax rate of 8.25 percent applies only to income above $300,000 adjusted gross income for married or $150,000 AGI for single filers.
• There is a $300 EITC provision for very low-income family filers and $150 for very low-income individuals.
• The tax cuts are projected to equal an annual economic stimulus of $135 million in middle-class tax rebates.
• This initiative is progressive, simpler to understand and revenue neutral.