Stock Market Plunge Gives Utah Lawmakers Pause

None by KCPW

(KCPW News) Yesterday's dramatic 400-point plunge in the U.S. stock market caused a ripple of anxiety on Utah's Capitol Hill. After all, the ink is beginning to dry on a record 220-million dollar tax cut, and some have questioned the wisdom of that cut with the prospect of a slowing economy.

"We knew we couldn't take tax cuts so deep that in bad times we'd have to come back and raise taxes," says Senate President John Valentine.

"It's my opinion that the tax cuts we've made will add stability to our system, rather than the instability of the old system."

Lawmakers say lowering the income tax to a standard five percent rate broadens the tax base, and lowering the sales tax rate makes a traditionally volatile revenue source more stable. 

The Utah House made some last minute changes to the plan to ensure that public transit will not lose funding. They also widened the income tax cut, giving additional benefit to low-income earners.

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