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Show Fewer Potential Taxpayers in Utah Results in Higher Taxes Here One of the basic difficulties difficul-ties in solving Utah's stale and local finance problems is il.at the State's population consists of a disproportionately disproportionate-ly low percentage of "tax producers" and a high percentage per-centage of "lax consumers" This is the conclusion reached reach-ed by Utah Foundation, the private tax research organisation, organi-sation, in an examination of state and local expenditure trends in Utah. The study shows that only two states (. Mississippi and South Dal'.ota) have a lower pronortional population in the normal working-age (20-64) brackets than does Utah. Approximately Ap-proximately 48.4 percent of 1 tah's population is in this age group, compared with 52. 2 percent for the nation as a w-'ole. Thus, with a lower proportion of "tax producers" and a greater demand for governmental services resulting result-ing Irom the higher proportion propor-tion of "tax consumers", Utah is forcfr'J to impose higher general taxes than do ether states in order to maintain main-tain the same level of governmental gov-ernmental services. The Foundation notes that during the 1950-1960 decades, years of age increased by 43 percent compared with a rise of only 17 percent in the 2iV 64 age bracket. The fact that "tax consumers" (those under un-der 20) were increasing much more rapidly than the working-age population resulted in a steady increase tax bur cen. Total state and local tax collections in Utah rose from $80 million in 1950 to $194 million in 196 and $418 million mil-lion in 1970. In terms of the changing economy, this tax load was equal to 9.6 percent of Utah's total personal income in-come in 1950, 11.6 percent in 1960, and 13.4 percent in I97C. On the other hand, there has been a slowdown in Utah's birthrate during re-cent re-cent years. As a result, the growth in the under-29 age bracket was only 14 percent in the 1960-1970 decade, com- pared with an increase of 22 percent in the 20-64 ag- group. Since the working-age population now is rising faster fast-er than the tax-consuming population, Utah Foundation analysts expect that there should be reduced pressures for increased spending md relatively more persons to share the tax load. These factors fac-tors should mitigate some what the rise in Utah's state and local tax burden during the years immediately ahead. Another significant development develop-ment according to the Foundation Foun-dation has been the movement move-ment of population from rural rur-al areas to urban centers and irom large core cities to suburban sub-urban communities. Such population shifts have tended to accentuate, the demand for ir. creased government spending spend-ing in the fields of education highways, health, sanitation, and other urban-type services. serv-ices. Popluation increases in the younger age groups have resulted re-sulted in sharply , higher spending for public education educa-tion during the past three decades. de-cades. The Foundation report re-port observes that proportion propor-tion of total state and local txpenditures going for public pub-lic education in Utah rose from 34.2 percent in 1942 to 47.9 percent in 1960, and to 50.5 percent in 1970. Because of a shifting of costs to Federal Social Security Sec-urity (old-age, survivors, and disability insurance), the proportion of total state and local spending allocated for public welfare declined from 20.4 percent in 1942 to 6.8 percent per-cent in 1960. The study notes, however, that a dramatic turnaround in this trend during dur-ing recent years has caused increased concern to legislators, legisla-tors, officials, and the tax-paying tax-paying public. The percentage percent-age of total state and local expendtiures going for wel- fare purposes in Utah has risen from 6.2 percent in 1965 to 7.6 percent in 1970. Growing Grow-ing instability in the family unit along with liberalized Federal laws, regulations, and court decisions are cited as major factors in this recent re-cent rise in welfare spending. |