Budget
Bob Bernick has an insightful article on the direction Gov. Huntsman's budget proposal likely will take. If the Gov does push (1) Rep. Dougall's "H3" personal income tax proposal (flat rate below 5%, with variable credits for mortgage interest and charitable contributions) and (2) elimination of the sales tax on food, that would be a great launch into the session.
We should dig deeper in removing the sales tax on food than the $37 million mentioned in the article. The more I think about this issue, the less inclined I am to replace the State's portion of the revenue that would be lost. I think we'd be better off leaving most of that money in our citizens' pockets. It might make sense to let local governments recoup their share of the lost revenues (by increasing the sales tax on non-food items .15%) and having the State recoup .15%, rather than the .5% originally proposed. This would net about a $100 million reduction in sales tax revenue and move the discussion closer to President Valentine's proposal of eliminating sales tax on food with no recoupments. It also would leave some room to give additional tax relief (around the $23 million the Governor proposes) on the income tax side.
Balanced, on-going relief of about $125 million, coupled with returning a good chunk of the current-year surplus to the taxpayers, would be good fiscal policy.
The D-News article mentions a poll suggesting that Utahns don't want a tax cut. As I discussed in this previous entry, the question people were asked in that poll seems biased toward a particular outcome.
UPDATE (later): Sen. Appropriations Chair Lyle Hillyard offers an excellent explanation of the budgeting process and anticipated revenues. Gardening, budgeting, you name the topic -- Lyle "Blogmeister" Hillyard has found his calling in life.
UPDATE (12/09/05): Here are the Gov's budget recommendations.
We should dig deeper in removing the sales tax on food than the $37 million mentioned in the article. The more I think about this issue, the less inclined I am to replace the State's portion of the revenue that would be lost. I think we'd be better off leaving most of that money in our citizens' pockets. It might make sense to let local governments recoup their share of the lost revenues (by increasing the sales tax on non-food items .15%) and having the State recoup .15%, rather than the .5% originally proposed. This would net about a $100 million reduction in sales tax revenue and move the discussion closer to President Valentine's proposal of eliminating sales tax on food with no recoupments. It also would leave some room to give additional tax relief (around the $23 million the Governor proposes) on the income tax side.
Balanced, on-going relief of about $125 million, coupled with returning a good chunk of the current-year surplus to the taxpayers, would be good fiscal policy.
The D-News article mentions a poll suggesting that Utahns don't want a tax cut. As I discussed in this previous entry, the question people were asked in that poll seems biased toward a particular outcome.
UPDATE (later): Sen. Appropriations Chair Lyle Hillyard offers an excellent explanation of the budgeting process and anticipated revenues. Gardening, budgeting, you name the topic -- Lyle "Blogmeister" Hillyard has found his calling in life.
UPDATE (12/09/05): Here are the Gov's budget recommendations.
posted by steve u. at 12/08/2005
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11 Comments:
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This post has been removed by a blog administrator.
Steve,
I was a little disappointed to see that you deleted my comment. I think that's the first time I've seen you delete a reader's comment.
You're talking about the income tax in your post. I just wanted to point out that there are those who feel that there is
no legal or constitutional basis for the federal income tax or the state income tax.
I asked for you to give us your opinion on Bob Schulz and the research that he has done.
It appears that you made a comment in reply to my comment but then decided to delete your comment and my comment. And I'm not going to really get down on you for this. The subject of freedom and liberty is not always an easy subject to discuss.
I commend you and applaud you for blogging as a State Representative. That is good leadership in my book.
Don't feel like you have to respond to this right away. Blogs are all about the conversation. Let me have my say here. Then let it sit here and rest without you responding immediately if you don't feel like responding immediately.
Sometime down the line I'll ask you again to give us your opinion of Bob Schulz and the research that he has done. Once you've had some time to look over his website and decide what you think about it, well then you can let us know what you think at that time.
Bob's website is here...
http://www.givemeliberty.org
Give it a read when you get a chance and start thinking about some sort of an official statement from you regarding Bob Schulz.
Thanks for blogging and keep up the good work.
A concerned Citizen
Steve --
I like everything that I have read regarding the budget, however I'm a pretty solid skeptic of the flat tax. I haven't been able to find a working model of the two proposed tax credits involved in the "flatter" tax. If you could give me any guidance on the proposed credits I'd appreciate it.
Anon -- respectfully, your a nut. You need to be really cautious about what nonsense you accept. These arguements have been made before and struck down time and time again. I have many clients that have been dooped by these arguements, and are struggling to get their finances back under control after the IRS catches up with them. Everyone else pays their fair share of taxes. Once you accept that your life will be alot easier.
I'm sure the founding fathers' lives would have been much easier if they had chosen to not go against the King of England.
The easy way is not always the right way.
Bob Schulz seems to be a good man in my opinion.
You may want to read some more about Bob Schulz and further review his website before you are so quick to put down his research.
But I am more interested in the opinion of Steve Urquhart than I am of pramahaphil who's income would dry up if not for his "IRS business".
Also I will eventually ask Steve to make a blog post titled "My Opinion of Bob Schulz" where Steve will give his official position on Bob Schulz and the research that Bob Schulz has done. Then it will be there via permalink for posterity.
http://www.givemeliberty.org
A concerned Citizen
Thats not true. I offer other services besides tax.
Concerned Citizen -- I have written an opinion of Bob Schultz if you are interested.
I am not interested in your opinion. I am interested in the opinion of Steve Urquhart.
I find it interesting that Steve did apparently reply to my initial comment and then changed his mind and deleted both his reply and my initial comment.
And now he lets my subsequent comment along with the link to Bob's website stand.
Perhaps Steve will post a quick little comment here and give us his opinion of Bob Schulz and the research that Bob Schulz has done.
I sure would appreciate it if he did.
About Bob Schulz
Concerned Citizen
.
In that case, here are my last thoughts for you and Bob Schultz.
You say it is unconstitutional for the government to require taxes, however you are a beneficiary of that system. Schools, universities, roads, national parks, protection from foreign and domestic threats, etc is all paid for by taxes.
How do you see the government operating without taxes? (crickets)Yet you people allow the rest of America to pay the tax burden while you and Bob Schultz stand aloof folding your arms like a 2 year-old who just had their favorite toy taken, refusing to pay for the freedoms you take for granted.
I have no respect for people like you and Bob Schultz. The government has problems, yes, however it is our government and our freedoms that tax dollars finance.
I hope that if you refuse to pay your taxes you have the honesty to not vote -- you haven't paid the price for that right.
Steve--
I apologize that I continued this. It is an issue that really gets me going.
pramahaphil,
It is sad that you think the system is run by our tax dollars.
Have you researched the federal reserve and how money is created?
I would think you have not.
Also, have you ever heard about how the Social Security system is run? Your money is not put in a savings account, and it is not even saved for that matter anyway.
You are being lied to about money and the income tax in this country, and hopefully one day you will realize what is really going on.
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