Flush with extra money, Republican leaders in the Utah State Legislature are promoting an income tax cut. FOX 13 first reported last year legislative leaders were going to push for one.
On Wednesday, the Senate Revenue and Taxation Committee passed Senate Bill 59, which lowers the rate from 4.95% to 4.85%. It passed along party lines with Democrats voting against it.
“We can take some of that money and return it to the taxpayers,” said Sen. Dan McCay, the bill’s sponsor.
For an average family of four making $72,000? It’s about $98 back each year. If a family of four makes $40,000? It’s about $45.
“It’s not a big number, but it does make a difference to those who earn that income. That’s one more expense, a few more meals,” he told the committee.
But some think the Utah State Legislature can do better. Public comment from taxpayer advocacy groups and activists argued the legislature can go lower in the income tax rate. Others said the legislature should offer no tax cut and instead spend it on more pressing social service needs.
Speaking to reporters on Wednesday, Senate GOP leaders signaled that the rate might go lower when the bill makes its way to the House of Representatives. The 4.85% rate may just be a starting point in budget negotiations on Capitol Hill.
But leaders in both parties cautioned about going too low.
“We’re trying to balance fiscally, being careful and conservative and also some return to our taxpayers and in addition to that, funding some high priorities,” said Senate Majority Whip Ann Millner, R-Ogden. “We want education, we’re concerned about water.”
Senate Minority Whip Luz Escamilla, D-Salt Lake City, warned of having to slash vital government programs if an economic bubble bursts.
“Let’s be clear that money is probably not going to be there next year and the following year so we need to be cautious and not jump and really end up in a situation where we’re going to be cutting programs and services,” she said.
