By Curt Bramble
Senator, District 16: Provo
Over the next 10 to 20 years, Utah's income tax base will continue to shrink, severely under-funding education.
SB 242 passed the Senate Friday afternoon on a 21-4 vote. This proposal drops the income tax rate from 7 percent to under 5 percent and will ensure the economic stability of education and of the state.
There may be a few cases where taxpayers who receive an extraordinarily disproportionate benefit from deductions will pay more under tax reform. One example I recently ran across is a married couple making over $60K, with a series of deductions that allows them to pay no state taxes under the current system.
This reform bill is good tax policy. It will build the tax base and lower the rate while bringing equity back into our tax system. It provides credits for charitable contributions, homeowners, and mortgage interest. Plus it allows for a $100 per person credit to offset any tax you happen to find immoral. :-)
If this bill passes the House, Utah will move from having the 14th highest tax rate to the 14th lowest in the nation, making our state much more competitive.
It is important to recognize that this is true tax reform- not just a tax cut.
This tax reform proposal delivers sound tax policy and economic development.
It is flatter, simpler, and more fair.