| Show Governor Wa WalKer ter Proposes Pro oses Tax System Changes es Aaron Weight Contributing Writer Governor Walker revealed her long-awaited long tax overhaul proposal just weeks before the end of her term tenn Walkers Walker's plan calls for sweeping changes to existing tax code The changes Walker believes would cr create ate a tax system for the century We have a tax structure in Utah that hasn't been significantly significantly significantly cantly revised for more than three decades Walker said Tax reform certainly wasn't the politically correct thing to todo todo todo do but it was the right thing to do for the future of the state It was clear the time had come to take action and bring our tax system into to the century The governor selected a team of local experts to study Utah's tax code and develop a aplan aplan aplan plan to update the antiquated system After over a year of study and debate the team proposed rop e i 16 Sterns J lax iaz reform proposal would maintain the three three legged legg d stool structure of income tax sales tax and property tax Walker and her team focused on the following goals goals goals- 1 Be fair just and bal bal- 2 Support a business- business friendly economic environ environ- ment 3 Focus on funding critical needs 4 Maintain structural balance 5 Be a tax system for the ry 6 Balance state and local obligations and revenue sources We have come up with a proposal that meets each of these criteria Walker said In short weve we've crafted recommendations recommendations recommendations rec rec- that broaden Utah's overall tax base while reducing the rate citizens will pay The Governors Governor's proposal does not include expected dollar amounts but claims to tobe tobe tobe be revenue neutral Although the one number-one goal of the study was to be fair and balanced most of Walkers Walker's recommendations call for less tax burden on businesses This means individuals individuals individuals indi indi- would shoulder more of the load For example under Walkers Walker's plan corporationS corporations corporations corpora corpora- would be exempt from paying income tax Walkers Walker's plan calls for a flat income tax for individuals preferably Walker continued on page 6 Walker Valker continued from front under five percent Walker also proposed that businesses be given capital asset exemptions for sales tax Under such exemptions businesses businesses businesses busi busi- nesses would not pay sales tax on goods and services The Governor said this is to decrease tax pyramiding or charging tax on the same item multiple times While businesses get the sales tax exemptions individuals als again get another tax Walkers Walker's plan requires only the ultimate consumers to pay sales tax The tax however would apply not only to products products products prod prod- as has been the case but also to services Barbers physicians lawyers and others would be required to collect sales tax for their services Businesses profit non-profit agencies agencies agencies agen agen- cies and the government would not be required to pay this tax Another of Walkers Walker's proposals proposals propos propos- als would repeal the sales tax exemption on motor fuel This would allow the state to tax gasoline sales two ways bythe by bythe the dollar and by the gallon Walker proposed that the per- per gallon tax rate be lowered when dollar sales are also taxed The proposal recommends that state and local sales tax structures be combined to simplify simplify simplify sim sim- compliance with tax laws A portion of the revenues would be taken by the state while local agencies would divide the remainder according to population Both the state and local governments governments gov gov- governments currently levy separate separate separate sepa sepa- rate sales taxes Property taxes would remain largely as they are now According to Walkers Walker's study the state property tax has the most stable history One proposed change however however how how- however ever cuts funding for water usage Instead of property tax subsidies water usage would be fully funded by user fees As with other aspects of Walkers Walker's s plan there were no figures showing how these changes would affect citizens I want all citizens to view this proposal as a piece of their future she said Legislators can now review these recommendations recommendations recommendations and work toward implementation I fully realize this package will change as aswell aswell aswell well it should My hope is that it will change for the better and become reality deserve tax reform our children and our future require it For more information visit http http http gover gover gover- gover nor 2004 |
