I like Sen. Hatch, but he has been naive about this tax plan and apparently doesn't know math. Even if you don’t itemize, it would hurt many typical Utahn families of two working parents with a combined income of $60,000 and four dependent children ranging from 17 through 24 that are trying to get through school. Right now, non-itemizers in this scenario pay taxes of $2,521. Under the new law, it would be $3,939. Not good.
If you itemize it gets worse, and more Utahns itemize than most other states because of the many charitable donations. Currently, if a family has a home with a $200,000 mortgage, withholding to match their Utah tax liability ($1,153), pay real property taxes of $2,500 and donate $6,000, they will pay income tax of $1,503. They get to itemize, plus they receive $24,300 in personal exemptions on their family.
Under the new program where the personal exemptions are stripped away, the tax would be $4,023, thus more than doubling their tax.
Come on, Hatch. This is hurting Utahns big-time. Either he doesn't fully understand this reform, or he is keeping something from the public.
I know the numbers. I am a retired CPA conservative Republican who will openly defy Hatch and any others who try to justify how this new tax bill is in the interest of average middle-class Utahns.