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Richard Piatt ReportingLooks like we might pay less income tax, but a higher sales tax -- the results of what Utah Legislators did today. A Special Session ended with those two proposals passing, as planned.
What this means for you is two things. One, a new way to figure your taxes. Two, progress on rush hour relief projects for both roads and rail.
When you figure your 2007 taxes, you'll be filling out a new form. It will give you an income tax choice between a flat rate of 5.35 per cent or the traditional tax rate of 7 percent with deductions. That change was approved today at the special session.
Neil Ashdown, Governor's Chief of Staff: "This implements a flat tax component into the tax code, and it provides tax relief for every Utahn who pays taxes."
The Governor's Chief of Staff says it is also much more.
"We've always looked at this as an investment in the tax code. This is an investment in our long-term competitiveness. This isn't about today's economy, this is about 20 years from now, tomorrow's economy."
There were strong no voices on the tax change. Among those was Senator Ed Mayne, who calls the change, which will mostly benefits the wealthy, an 'election year gimmick'.
Sen. Ed Mayne, (D) West Valley City: "This is a tax cut and it's an election year tax cut. Simple and plain, it's a gimmick and it's certainly not tax reform."
Advocates for the poor and for Public Education are also unhappy. They were hoping to get the 70 million dollars dedicated to tax relief, rededicated.
Kim Campbell, Pres. Utah Education Association: "We heard a lot of promises during the debate. And we're hoping they keep those promises. "
A separate measure, also approved today is a new way to pay for rail and roads. Each county in Utah can now ask voters if they want to raise sales tax for those upgrades.
Each project has to be prioritized under this bill. That could mean Salt Lake County's TRAX extension proposal might change before election day this November.
So this does mean Salt Lake County voters will be voting on a sales tax increase, not a property tax increase this fall, but right now, it's not clear if 100 percent of that money will go to the TRAX projects, as originally intended.
