Upcoming Legislative Session and Tax Issues

Today’s Salt Lake Tribune has published a Taxpayers Guide to the 2006 Legislative Session. Tax issues are expected to be a predominant theme during this session.

Included in the guide is information on issues such as:

  • Food tax – Lawmakers might consider refunds for low-income Utahns
  • Flat income tax – Having everyone pay the same proves not so simple
  • Tax breaks for business – Plans would encourage businesses that operate and employ in the state
  • The Deseret News this morning has published a poll which indicates that about half of Utahns would rather have their tax dollars spent on education than to receive a tax cut. This information comes one week before opening day of the Utah Legislative session, Monday, January 16th and in the face of a report that Utah is facing an accelerated economic growth period.

    Here are the percentages according to the Jones Poll:

  • 48 %:”Spend more money on public and higher education.”
  • 21 %: Some of the $1 billion in extra revenue legislators will have at their disposal should be “given in substantial tax cuts to Utah residents and businesses.”
  • 16 %: Spend most of the extra money on Human Services needs, such as helping the poor and disabled.
  • 8 %: More money should be spent on road construction and repairs. Six percent mentioned other state programs or needs
  • 1 %: No opinion as to where the extra cash should go
  • While Governor Jon Huntsman says he is pleased with these poll results, he is still planning to propose a tax cut ($40 million to $59 million):
    “I am confident that our proposed tax cut, which is by way of tax reform and dropping the sales tax on food, will serve the competitive and compassionate needs of our state well into the future,” Huntsman said.

    House Republicans are recommending a $230 million tax cut, but even a majority of those Utahns polled who are considered more “well-off” want the money to be spent on education.

    It will be interesting to see how this develops and if constituents’ desires are truly heard.

    In a related article in today’s D-News, there is an account of state budget surpluses around the country, including Utah’s $40 million……

    …..and in yet another article in today’s Salt Lake Tribune, city and county employees making more than six figures has tripled in the last five years – – – and includes few women.

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