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Richard Piatt ReportingThe Utah Legislature's special session will focus exclusively on taxes tomorrow. One proposal calls for a lower income tax rate; the other would allow for higher sales taxes to pay for transportation projects.
In order to attract more jobs, Utah has to compete with other states and their tax rates. They're going down in other western states, a reality Governor Huntsman wants to address with Utah tax reform. That's why he's pushed his plan to anyone who would listen, including the Legislature.
70 million dollars has been set aside to create a dual track income tax system. You could have the option of a 5.-3 percent flat rate or the current 7 percent rate with deductions allowed. The amount most Utah taxpayers would save amounts to about 50-dollars a year.
That relatively minor amount has critics wondering if it's worth it, since public education is chronically begging for money.
Kim Campbell, Utah Education Association: "We think governing should be about making good decisions. And we think this is a bad decision, based on the needs in education right now."
But it appears Tax Reform is a 'go'. So is a new funding mechanism for mass transit. At a rally today, supporters cheered for a bill that would let voters statewide raise sales tax on themselves. In Salt Lake County this year, that amounts to a quarter-cent more.
The payoff could be millions of dollars for either roads or rail.
Lane Beattie, Pres., Chamber of Commerce: "I am convinced that we will be able to have at least three rail lines, three TRAX lines and commuter rail."
Sen. Sheldon Killpack, (R) Syracuse: "It's a step in the right direction, but it certainly doesn't address all the needs we have with regards to transportation."
If all goes as planned, this special session would be a mixed bag -- lower income taxes on one hand, potentially higher sales taxes for transit on the other. In both cases the people supporting the idea say the same thing, that they are best for Utah in the long run.
