Monday
Buzz
Written by LaVarr Webb & Associates
Abbreviated UPD Today
Today is a national and state holiday, and we don’t usually publish on holidays. However, with all of the activity in the Legislature we thought we would at least publish the news headline links and a few other items.
Live Blog From the Legislature
Rep. Steve Urquhart, one of Utah’s pioneer political bloggers, sent Utah Policy Daily an e-mail message Sunday mentioning that he’s going to “live blog day 36 of the session.” Day 36 is today. So I assume Urquhart is going to do a series of posts today keeping everyone informed about what’s happening on the Hill. Check it out at Urquhart’s blog site.
Publishers Opinion
Who Wants A Big, Fat Tax Cut?
I asked that question in an opinion column several days ago and it’s worth asking again, now that the legislative session’s toughest decisions are about to be made.
Citizens don’t want a big, fat tax cut. A brand new Dan Jones poll commissioned by KSL-TV and the Deseret Morning News shows 58% of Utahns prefer to have the surplus spent on state needs like education and transportation. Only 28% want tax cuts. Even 54% of Republicans said spend the money on state needs.
The Senate wants a $100 million tax cut, which would be as big as any tax cut ever. Gov. Jon Huntsman initially said he wanted a $60 million cut, but now he’s up there with the House at $200 million or more. I’m all in favor of removing the sales tax on food, but it should be done over a couple of years, not all at once. Flattening the income tax and providing a major start on eliminating the sales tax on food could be done for around $100 million, which seems about right to me.
Business leaders don’t want a big, fat tax cut. Neither do local government leaders. Neither do the editorial boards of the state’s newspapers. It just doesn’t make a lot of sense to cut taxes now and then have to somehow come up with billions of dollars later to cover the state’s massive infrastructure backlog. It’s pay now or pay a whole lot more later. Construction costs are dramatically escalating.
As I wrote previously, most Utahns fully understand the state’s needs and see the value of investing to position the state for the future and ensure a high quality of life, good education for children, and mobility for citizens and businesses. It’s a clear choice. They’d rather have the Legislature make the investments than put a few bucks back in their own pockets.
We’re saying we trust the Legislature to spend our money wisely. We believe Utah’s political leaders are frugal. You are responsible. We don’t have massive unfunded pensions. The state’s bonding activity is well within reason. You balance the budget, every year. You’re not raising taxes. You’re putting most of the surplus money into true investments, not massively building base budgets or the size of government.
Here’s another voice on this topic. Sen. Tom Hatch, R-Panguitch, is one of the state’s most conservative legislators. Here’s what he wrote for the Senate Site blog, entitled “Common Sense”:
“Legislators are going to make some tough decisions in the next few days.
”Every one of us wants to cut taxes, and we will cut them. But to cut as deeply as some of the proposals we've seen doesn't make a lot of sense.
”The Senate voted to cut taxes by $100 million - the largest tax cut in state history. I'm concerned that if you go much north of that amount we may not meet the real needs of the state.
”Both the House and Senate have agreed to fund the growth in public education as well as increased Medicaid costs in addition to some other minor adjustments. That bill has passed through the House and Senate and has been signed by Governor Huntsman. The House and Senate have also agreed, in concept at least, to fund transportation and water projects (mainly transportation) with an additional $200 million of ongoing monies. Combine this with increased insurance costs, retirement benefits and a modest salary increase for state employees and there is nothing left for consideration to meet the other needs of the state.
”It does not make sense to force the Division of Wildlife Resources or our State Parks to pass on increased costs by raising fees to the sportsman and others while at the same time giving a huge tax cut. This is just one example from a committee with which I am deeply involved. Every other appropriations co-chair can give examples just as compelling for their committees.
”No one is talking about reckless government growth. I don't like growing government at all, but when you have a job to do, and the means to get the job done right, it doesn't make much sense to abdicate our responsibility to the citizens of one of the fastest growing states in the country.
”I too have had numerous contacts from constituents wanting everything from a half billion in tax relief to "spend it all and tax me more". In every case without exception those who contacted me did not have much information regarding the budget or the budget process nor were they looking at the big picture of balancing tax policy with the true needs (not wants) of our state.
”We need to take a hard look at the numbers, and cowboy up to our job as decision makers and statesmen.” |
