Jay Evensen
  • Front Page
  • Opinions
  • Second Thoughts
  • Portfolio
  • Awards
  • About

Will this be the year of the tax cut in Utah?

1/12/2022

0 Comments

 
When Utah lawmakers convene their 2022 regular session on Tuesday, they will be one of only 14 so-called citizen legislatures left in the country. 
The National Conference of State Legislatures defines a citizen legislature as one where elected representatives serve part-time and generally, unless they are retired, hold down full-time jobs, as well. 
Utahns should appreciate breathing this rarified air while they have it. Of the 14, Utah has the largest population, and it also had the highest growth rate among any state during the last decade. States tend to gravitate toward full-time legislatures as they grow larger and their issues become more complex and expensive.
Electing someone you might have to do business with makes for more responsive lawmaking. At times, that can translate into some bills based on nutty ideas. But it also means lawmakers know they have to face the people they serve on a regular basis, and perhaps rely on them for business.
Critics may complain that requiring lawmakers to support themselves through other jobs is inefficient and empowers bureaucrats who do spend full-time on state issues, but one thing is clear: Citizen legislatures tend to keep taxes low.
A 2000 study by Stephanie Owings of the U.S. Naval Academy and Rainald Borck of Humboldt University in Berlin looked at the effect of professional lawmaking on budgets in the U.S. Their conclusions, published by Sage Journals, found that “state government expenditure per capita is significantly lower the less professionalized the state legislature.”  
That’s important to remember as this legislative session convenes.
Tax money is rolling in. When he unveiled his proposed budget last month, Gov. Spencer Cox estimated the state has a  $1.16 billion surplus in ongoing funds and a $1.87 billion surplus in one-time funds, making for a combined excess of more than $3 billion.
And while no one seems entirely sure whether the riches will continue to roll (federal stimulus money has to account for some of the current excess), expect to see proposals to cut taxes.
The Senate Executive Appropriations Committee is recommending $160 million in cuts. The governor would like a refundable grocery tax credit. Others want to eliminate the state’s portion of sales tax on food altogether. Still others want to reduce the state’s flat income tax rate from 4.95% to 4.9%.
Given the size of the surplus, these are modest ideas. Expect outside forces to urge something much bigger.
In a November post on its website, the Utah Taxpayers Association argued for reducing the income tax to 4.5%. Don’t treat all the money as temporary, and don’t worry about rainy-day funds; they’re already flush, it said.
“The long-term outlook for Utah’s economy is strong, and one of the most important ways to ensure it continues on a healthy path is to lower our tax burden,” the post said, adding that the economy benefited when lawmakers boldly adopted a flat tax in 2006, effectively reducing the rate from 7% to 5%, “and it will work again this time.”
That may be a tough sell, given that the income tax is dedicated to public schools, colleges and universities, and to some programs for children and disabled people. But the argument that lower taxes leads to growth always gets some traction. 
This time, it might be bolstered by a new report from the Tax Foundation, a Washington think tank, that found high-tax states losing population to low-tax states in 2021. The nation grew by only an estimated 0.1% last year, but New York, California, Illinois, Hawaii and the District of Columbia all lost people, while Utah, Montana, Arizona and other low-tax states gained. Idaho grew by a whopping 3.4%.
As the report notes, a lot of factors likely contribute to someone’s decision where to move, but the foundation said the tax-rate correlation is too consistent to ignore. People want to go where it costs less to live.
Utah isn’t the only state that might reduce taxes. It’s hard to argue for keeping excess money when it’s forcibly extracted from taxpayers’ wallets. 
Then again, there is that lingering worry that the good times won’t last. 
Fitch Ratings in New York warned in October that state tax cuts could backfire. Referring to last year, it said, “U.S. states reduced taxes to a greater extent than anticipated … with some of the biggest changes likely to necessitate difficult budget choices in the future.”
If you’re a citizen lawmaker, doing business with the people you represent, the last thing you want to have to do is raise taxes next year because you cut them too much this year. 
Maybe, in addition to keeping government growth down, citizen legislatures also force politicians to act with greater prudence.
0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    RSS Feed

    Search this site


    Like what you read here?

      Please subscribe below, and we'll let you know when there is a new opinion.

    Enter your email address:

    Delivered by FeedBurner

    Picture

    The author

    Jay Evensen is the Opinion Editor of the Deseret News. He has more than 40 years experience as a reporter, editor and editorial writer in Oklahoma, New York City, Las Vegas and Salt Lake City. He also has been an adjunct journalism professor at Brigham Young and Weber State universities.

    Archives

    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012

    Categories

    All
    Campaign 2012
    Congress
    Crime
    Culture
    Iran
    Oil And Gas
    Poverty
    Steroids
    Taxes
    Utah
    Washington
    World Events
    World Events

    Links

    Deseret News
    Newslink
    Marianne Evensen's blog

Powered by Create your own unique website with customizable templates.
Photos from jamesjoel, DOWN ESPAÑA, garethjmsaunders, University of Salford, Adam Jones, Ph.D. - Global Photo Archive, marcoverch, See-ming Lee 李思明 SML, edgarzunigajr, Theo K, ActuaLitté, Mike Licht, NotionsCapital.com, Backbone Campaign, OIST (Okinawa Institute of Science and Technology), bradleygee, @sage_solar, sianiweston, makelessnoise, COD Newsroom, philozopher, Congressman George Miller, Jordi Bernabeu, edgarzunigajr, National Assembly For Wales / Cynulliad Cymru, simpleinsomnia, Mike Bonitz, Becker1999, manhhai, BiblioArchives / LibraryArchives, amira_a, Ken Lund, Bread for the World, r.nial.bradshaw, DearEdward, sinisterbluebox, denebola2025, thedoc31, ** RCB **, IQRemix, sandiegoduiattorney, Rob.Bertholf, Seluryar, Ben Sutherland, O.S. Fisher, Tony Webster, www.rubenholthuijsen.nl, Zachi Evenor, jonnwilliams, Lion Multimedia Production U.S.A., penjelly, jillccarlson, ADAM TAS IMAGES, UNMEER, DonkeyHotey, USDAgov, The Prime Minister's Office, Maicon Garcia, CountyLemonade, familymwr, Muffet, DonkeyHotey, tedeytan, KristineL761, penjelly, Leap Kye, sully213, NLNY, frankieleon, haven't the slightest, ljlandre, jalbertbowdenii, Rvs1966, Marion Doss, Vassilis Online, Dan Bock, Prestonbot, Frontierofficial, L. Bartha, educators.co.uk, Kelly Hunter, lindsayloveshermac, Michael.Jolley, dw_ross, Janitors, KAZVorpal, combusean, wuestenigel, apardavila, BodyWorn, MDGovpics, MHS Touchdown Club, JeepersMedia, Elvert Barnes, fred_v, CountyLemonade, mitchell haindfield, qbac07, David Holt London, Hoshi_sae, DonkeyHotey, aaronrhawkins, Ruth and Dave, CountyLemonade, Akademija Oxford, NASA Goddard Photo and Video, Chimpanz APe, huskyte77, GotCredit, sandiegoduiattorney, pacificpelican, streetsensedc, ell brown, Aaron Volkening, rgserapio, Asian Development Bank, paularps, ThoseGuys119, USDAgov, SIM USA, gnrklk, kthypryn, Zeitfixierer, vwcampin, regan76, frankieleon, Robert Couse-Baker, JoeInSouthernCA, SounderBruce, ThoseGuys119, CDC Global Health, Gage Skidmore, bunnicula, Fire At Will [Photography], Alexandre Prévot, Anth0ny Gale, vastateparksstaff, raphael.chekroun, Gerry Dincher, halseike, Prayitno / Thank you for (12 millions +) view, Gage Skidmore, infomatique, omarsalvatierragracida, Jerk Alert Productions, DonkeyHotey, Österreichisches Außenministerium, Photocapy, USDAgov, Taymaz Valley, jencu, Peter Krantz, WayShare, Mike Licht, NotionsCapital.com, gruntzooki, CountyLemonade, makelessnoise, Denise Cross Photography, Roadgeek Adam, Tony Webster, amy.gizienski, faungg's photo, makelessnoise, FolsomNatural, Loimere, free pictures of money, Exile on Ontario St, EvinDC, ell brown, kamirao, coachphatty, Keith Allison, Raido Kaldma, avrene, Shutterbug Fotos, Elvert Barnes, Andrew Feinberg, Tony Webster, danxoneil, GrandGeneralStormCommando, MShades, Joe Frazier Photo, Kurdishstruggle, Omranic, SounderBruce, Mike Morbeck, Got Credit, Scudamore's Punting Company, wuestenigel, r.nial.bradshaw, NIAID, torbakhopper, 81disasters, gaobo, John Haro, Metro Atlanta Transit Productions, foundin_a_attic, Sten Dueland, tedeytan, CarbonNYC [in SF!], Mike Licht, NotionsCapital.com, marcn, pburka, BBurchell Photography, wbaiv, heyexit, Phillie Casablanca, Neil T, LendingMemo, Elsie esq., Mike Licht, NotionsCapital.com, n4rwhals, WalterPro4755, railsr4me, JLaw45, Janitors, USDAgov, MarkDoliner, educators.co.uk, wuestenigel, Franco Folini, JeanneMenjoulet&Cie, WayShare, Gamma Man, ninara, Bob Linsdell, H.KoPP, Vegar S Hansen Photography, denebola2025, Aircaft @ Gloucestershire Airport By James, Talusss, LaBellaVida, wwarby, easysentri, evelynquek, Ken Lund, rdmsf, North Charleston, t--h--s, denisbin, stcyshn, Tim Evanson, KAZVorpal, jurvetson, Simon_sees, thisisbossi, Photographing Travis, Phil Roeder, rich701, BPPrice, Kadano, quinnums, MoneyBlogNewz, wickenden, Lost Albatross, Bernd Thaller, Dave Snowden, CountyLemonade, au_ears, annikaleigh, magerleagues, MICOLO J Thanx 4 725k+ views, DonkeyHotey, progre, frankieleon, quinn.anya, Ryan Hallock, jsnsndr, abominable_eagle, Alan Cleaver, aflcio, CDC Global Health, NASA Goddard Photo and Video, jellygator, Jason M Parrish, USDAgov, Mystery in the mail, CJS*64 "Man with a camera", BenDibble, Joybot, JoeInSouthernCA, Pawel Maryanov, kennethkonica, mitchell haindfield, USDAgov, stevebott, Tyler Merbler, NCDOTcommunications, Exile on Ontario St, CBP Photography, jboe2009, WWYD?, liveoncelivewild, vaxomatic, Hunky Punk, tedeytan, GotCredit, Find Your Feet, Fibonacci Blue, Nicholas_T, Sergey Galyonkin, shock264, Georgie Pauwels, EU Humanitarian Aid and Civil Protection, adifferentbrian, Seluryar, Riik@mctr, Andrew Moura, Michael.Jolley, kellybdc, inkknife_2000 (7.5 million views +), JeepersMedia, TheTruthAbout, Anton V. Larionov, HloomHloom, surreynews, {Guerrilla Futures | Jason Tester}, Secretary of Defense, The All-Nite Images, FootMassagez, You're In My Light (jerrysEYES), BLMOregon, Achilli Family | Journeys, Gerry Dincher, Ken Lund, Triple-green, yourbestdigs, Richard Elzey, Prestonbot, automobileitalia, Fora do Eixo, mary_gaston22, bk2000, AutrementDit Toronto., Elvert Barnes, dualdflipflop, mikemacmarketing, Hoshi_sae, torbakhopper, eburniche3, Mike Licht, NotionsCapital.com, Abeeeer, Rob.Bertholf, Don Hankins, dannielleblumenthal-thinkbrandfirst, USDAgov, wuestenigel, Michael.Jolley, xiquinhosilva, Images_of_Money, OregonDOT, [email protected], gregfriese, SounderBruce, Kevin Johnston, Imagens Evangélicas, loop_oh, Magic Robot, funktionhouse, Gage Skidmore, Yosuke WATANABE, Mark Scott Johnson, F43r1x, ljlphotography, dsearls, David Holt London, ER24 EMS (Pty) Ltd., Images_of_Money, roberthuffstutter, monkeyz_uncle, zemistor, fred_v, DonkeyHotey, Obama-Biden Transition Project, CedarBendDrive, nestor galina, brianholsclaw, ryochiji, thisisbossi, Bright Meadow, richard winchell, Svadilfari, Edward M Johnson, NavaInstigator>>>, VarsityLife, ourbethlehem, Mr. T in DC, mwanasimba, Franco Folini, qnr, Dougtone, LightinkLibrarian, Obama-Biden Transition Project, The Official CTBTO Photostream, AstroSamantha, MoreSatisfyingPhotos.com, The Shopping Sherpa, The National Guard, craigdietrich, kamshots, ewan traveler, World Can't Wait, Gila Forest, kaffeeringe, jgurbisz, gruntzooki, Supermac1961, thievingjoker, Rod Waddington, PlayfulLibrarian, Philip Taylor PT, AlicePopkorn, Raido Kaldma, dan taylor, Cannabis Culture, surreynews, cliff1066™, Lars Plougmann, ANZ Cluster Munition Coalition, Tracy O, www.davidbaxendale.com, Rob Barrett Photography, BuzzFarmers, Political Graveyard, ojbyrne, US Mission Geneva, inkknife_2000, ubiquit23, Dan Bock, irrezolut, Frankie Roberto, Abode of Chaos, KOMUnews, John Pavelka, ElectronicFrontierFoundation, DonkeyHotey, carlos.a.martinez, pnoeric, ARTS, ubiquit23, Ken Lund, Tony Fischer Photography, brewbooks, || UggBoy♥UggGirl || PHOTO || WORLD || TRAVEL ||, blackplastic, cristee12, Shan213, OPEN Sports, Korean Resource Center 민족학교, cocoate.com, karola riegler photography, 4nitsirk, gnuckx, citizenactionny, rezsox, Jeffrey Beall, david_shane, Mrs. Gemstone, Erik Daniel Drost, stockicide, kadluba, joaquinuy, quinn.anya, ReneS, StockMonkeys.com, loop_oh, Steve Tolcher, Iqbal Osman1, kiwanja, rawmustard, Anthony J, El Bibliomata, International Information Program (IIP), Alex McClung, danielmoyle, "G" jewels g is for grandma, slgckgc, Images_of_Money, fivedollarones, x1klima, Gabriel GM, redjar, andertoons, gvgoebel, .Larry Page, Mr. T in DC, chintanamin, KatVitulano Photos, Ken Lund, adactio, shroncin, RobotSkirts, jeffschuler, VinothChandar, Joybot, neurollero, erasergirl, Matías Garabedian, viviandnguyen_, Digitale Gesellschaft, markhillary, mkphotonet, jgBeachcomber, jimbowen0306, Franco Folini, dno1967b, jurvetson, MargaretNapier, Elvert Barnes, muddum27, [email protected], Frontierofficial, dsearls, Shamanic Shift, Andrew Feinberg, Prayitno/ more than 2 millions views: thank you!, playerx, FSonne-pennstate73, The Daring Librarian, Vicky Hugheston, thenestor, Dusan Simonovic, David Reber's Hammer Photography, Justin A. Wilcox, Hollywood_PR, AR McLin, BrownGuacamole, Gage Skidmore, zache, Medill DC, wheat_in_your_hair, patricialow, Matt McGee, Bill Stanley, jerekeys, cletch, 6SN7, killrbeez, شبكة برق | B.R.Q, colros, Eric Kilby, kenteegardin, Mike Licht, NotionsCapital.com, Erik Daniel Drost, Edward Dalmulder, chris friese, simone.brunozzi, Daquella manera, stevebott, stevendepolo, DFID - UK Department for International Development, justinmatthew21, a.drian, cudmore, Extra Ketchup, wbaiv, Loren Javier, swanksalot, CountyLemonade, indigoprime, Bryn Pinzgauer, Paul Robertson, Gruenemann, r.nial.bradshaw, Sam Beebe, Ecotrust, Fibonacci Blue, .jocelyn., RESchroeder, MoneyBlogNewz, matze_ott, swskeptic, peterolthof, Charleston's TheDigitel, Tony Webster, Themeplus, sDanOoO, CountyLemonade, Our Dream Photography (Personal), anitakhart, Waiting For The Word, Matt-Zimmerman, Dougtone