Battle Brewing Over Possible Flat Tax

Battle Brewing Over Possible Flat Tax

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Richard Piatt ReportingThere is increasing pressure on state leaders to change the way you pay taxes, but one of the proposals, a so-called flat tax, is raising red flags for some people.

There are serious concerns that a flat income tax--where everyone pays the same rate regardless of how much you make--would not be fair. The proposal is preliminary right now, but is on the table, as a Legislative task force considers tax reform in general.

Advocates for lower income people, for example, say if everyone pays four percent, that amount is a bigger chunk of income from a person who makes 30-thousand dollars a year than it is from a person who makes 130-thousand dollars a year.

Today the Governor addressed his views on the flat tax at his monthly news conference. He insists he does want a 'flatter' income tax than we have now, but also wants it to be fair.

Governor Jon Huntsman, Jr.: "Yes, having a tax plan that would adversely affect those at the low end of the income scale would not be acceptable to me, which is why I'm talking about a flatter tax and not a flat tax."

A recent Dan Jones poll for KSL and the Deseret Morning news gives us a glimpse of the public's view of a flat tax. For example, most people like the idea of a five percent flat tax, with the current deductions in place -- for instance, the deductions for children and home mortgages.

People do NOT like the idea of a lower tax rate --four percent-- deductions. 70 percent say they oppose that idea.

So already you can see the mixed reviews the flat tax idea is getting. It also illustrates how tough tax reform is going to be overall.

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