Gov. Herbert calls for a $160M tax cut — double what was proposed

Utah Gov. Gary Herbert, faced with new estimates reflecting a $682 million surplus, called on lawmakers to double the already proposed tax cut from $80 million to $160 million.

“This year’s revenue estimates show that our economy continues to thrive,” Herbert said in a prepared statement. “This success is due to hardworking Utahns. Our continuing efforts to find efficiencies in state government and the success of our economy have helped produce another year of strong revenues."

The governor said the additional tax cut should be targeted to help low- and middle-income families.

House Speaker Brad Wilson and Senate President Stuart Adams said they supported a $160 million tax cut.

Legislators have already set aside $80 million for a tax cut as part of their tax reform package, which is expected to be discussed a final time in a task force meeting Monday prior to a legislative special session that could take place Thursday.

The new revenue estimates unveiled Friday show some $482 million in new ongoing revenues and about $200 million in surplus that is available only one-time and not likely to be built into the base budget going forward. Most of the ongoing revenue growth is in income taxes, which are reserved for public education.

Wilson, the House speaker, agreed that it’s time Utahns receive a hefty tax cut.

“Utah families deserve a dividend on the extraordinary success our state has enjoyed over the past several years, which will come in the form of a significant tax cut," he said in a prepared statement. “This cut in no way diminishes our commitment to education in the state, which will continue to grow in meaningful ways through the tax reform proposal."

Adams, the Senate president, pointed to the numbers as a demonstration of the structural imbalance in the budget that legislators have been warning about: rapid growth in the income tax that is entirely dedicated to education and much more sluggish gains in the sales taxes that fund the rest of government — from prisons to health care.

“This is another prime example that now is a desirable time to be forward-thinking and improve Utah’s tax structure," Adams said. "These revenue estimates highlight the structural imbalance in the state budget we have been working to resolve. The new revenue provides us the opportunity to add additional funding to education while providing Utahns with a tax cut.”

The Tribune will update this story.

from The Salt Lake Tribune https://ift.tt/2DSGC2f