Welcome to The Senate Site

Monday, August 28, 2006

Tax Reform: Summary & Update

Why write from scratch when Alan Choate already did the heavy lifting? Today's Daily Herald:
The income tax proposals would "finish the work we started" in this year's legislative session, said state Sen. Curt Bramble, R-Provo. Lawmakers reduced the sales tax on food, but legislation that would've lowered the income tax rate stalled in the state House of Representatives.

The current proposal would expand the income tax brackets -- currently, all income over $8,400 is taxed at the highest rate of 7 percent. Moving that threshold up would mean more of a person's income would be taxed at a lower rate.

That change would take effect in time for the 2006 tax year. The other component of income tax changes -- a flat tax -- would take effect next year.

If the flat tax option makes it into law, taxpayers would figure their taxes as they always do and then also multiply their taxable income by a flat rate. The lower amount would be the income tax due.

"We're adding one additional computation. It adds two lines to the front page" of the tax form, said Bramble.

"We pushed for true reform for the last three years and we couldn't get legislative support," Bramble added. "This is an incremental step in the reform process. It is a big deal, introducing a flat tax into our system."

The changes would introduce a tax cut estimated at $70 million.

The other measure that would be before lawmakers concerns transit projects in Salt Lake County. Legislation is needed to allow almost $900 million slated for mass transit to come from a sales tax increase instead of a property tax hike.

2 Comments:

Anonymous Anonymous said...

Why not post the whole article instead of filtering it?

8/28/2006 2:55 PM  
Blogger The Senate Site said...

Um . . . because it was long article. Because I just picked a highlight that was 1) informative and 2) featured a senator. Because the link is there for anyone who wants to read the whole thing (and I would encourage it). Because I was at least mildly uncomfortable with wholesale piracy of someone else’s copyrighted material.

Besides that, I guess there is no real reason.

Tax reform will continue to be an interesting discussion. The senate is full of smart, experienced people with divided opinions. At this point, there’s no way to predict how this one will turn out.

8/28/2006 11:30 PM  

Post a Comment

<< Home

    Senate Site Feed

Home | Profiles | Archive | Links | Official Information | About | Contact | Government 2.0 Lab | Back to Top
© 2008. All rights reserved. Designed by Jeremy Wright & His Brother-In-Law