The Governor’s Office has begun to circulate a tax cut proposal. Call it a major milestone in the journey we started so long ago on tax reform.
This proposal lowers Utah’s optional flat tax rate to five percent.
It addresses concerns about retaining tax benefits for charitable contributions, mortgage interest, medical expenses, etc.
Here where it really gets good:
Under this plan, 80 percent of Utahns will probably switch to the flat tax. This is not another tax cut for the wealthy. 87 percent of those making between $5K and $25K per year will save money if they switch to the flat tax. 82 percent of people making less than $50K will save if they switch.
76 percent of those making over $50K will save if they switch. No one will pay more than they do now. (Those who won’t save can stick with the old system.)
Price tag: $110 Million.
At first glance, we think this makes a lot of sense. It's fairer, flatter, and simpler. It keeps us appropriately geared toward economic development and makes Utah more competitive. We'll be discussing this proposal in detail over the next few weeks.
For those who want to dig a little deeper, here’s some eye candy in PDF
We’d appreciate your thoughts.