THERE WILL BE A QUIZ

Huntsman Tax Reform on the Table at Special Legislative Session Tuesday

By Tracy Medley, 9-18-06

Governor Huntsman has some big ideas for reforming Utah’s tax system, but it is really what Utah taxpayers want? Well…yes and no.

This week Utah lawmakers will meet in a special session to discuss cutting personal income taxes by $70 million; just the first step according to Huntsman whose long-term goal is to introduce a dual-track tax system, which would allow taxpayers to choose between using the current tax structure or electing to pay flat tax by 2007.

The $70 million tax cut, which will amount to $24 dollars per individual taxpayer has some wondering it that money wouldn’t be better spent on Utah’s deteriorating school system.

A poll conducted by the Deseret Morning News Sunday suggests that 58 percent of Utah taxpayers would prefer to see that extra money spent on schools rather than get a $24 income tax cut. Regrettably at this point, what the majority of Utah taxpayers want is a moot point. The $70 million tax cut is a done deal—approved by our overwhelmingly republican legislature last February.

Not to suggest that the majority of Utah’s taxpayers don’t want reform—they do; or that Utah’s education system isn’t on Gov. Huntsman’s mind—it is. According a piece by Bob Bernick Jr. and Lisa Riley Roche in last Wednesday’s D-News, Huntsman is hopeful that the state’s economy will maintain enough of an upswing to accommodate both significant increases in educational spending and still have enough residual funds for implementing the next stage of his income tax reform package.

Huntsman believes that moving Utah to a flat tax (somewhere around 5 percent) will help make Utah a more competitive market, attract business and ultimately bring more revenue to the state. It makes sense, but critics of the flat tax plan have some compelling arguments of their own, claiming that the move would only benefit 5 percent of Utah’s wealthiest citizens.

Despite criticism, it doesn’t seem like Huntsman will have too much opposition when the legislature meets this Tuesday. With democrats outnumbered 2-to-1 in both the House and Senate and opinions about the tax plan largely split along party lines it's looking very likely that Huntsman’s dual-track plan will pass.

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