Senate Unveils Income Tax Cut Plan

None by KCPW

(KCPW News) More than halfway through the Legislative session, the State Senate has finally unveiled its tax cut proposal. Governor Huntsman has merged his plan with the Senate's - lowering the new flat tax rate to five percent and offering a tax credit for those who file under the flat tax. The intent is to get more people to choose the flat tax, rather than the regular tax bracket structure in Utah's dual-system.

Low-income Utahns will claim the largest tax credit. High-income earners with large families will benefit least from the change. The Senate plan amounts to a tax cut of about 100-million dollars - far shy of the 300-million dollar House proposal which includes removing the sales tax on unprepared food.

If approved, the changes will go into effect for 2007 tax returns filed next April.

Email to a friendPosted in 2007 Legislative Coverage, Legislative Coverage, and KCPW Newsroom. Copyright 2008 KCPW