Merrill Cook says Gov. Norm Bangerter shouldn't call a special legislative session before November's election to take up the matter of an income-tax credit for sales tax paid on food.
Cook's Independent Party of Utah gathered more than the 69,000 petition signatures needed to get the removal of the food sales tax on the Nov. 6 ballot.Democratic State Chairman Peter Billings Jr. says Democrats would look favorably on such a special session. The Democrats currently support Cook's initiative, but with the added proviso that if surplus revenues don't cover the estimated $90 million loss in state revenues the removal would bring, that other taxes be raised.
If a special session granted the income-tax credit, Billings said, the initiative wouldn't be needed and Democrats wouldn't support it.
Cook doesn't want any other taxes raised. He maintains surpluses plus removing selected current sales tax exemptions will make up the loss.
In opposing a special session, which could politically short-circuit Cook's November vote, Cook said, "Nothing less than the integrity of direct legislation law in Utah is at stake."
No special session should be called, Cook said, because:
- More than 125,000 signed Initiative A (the ballot title of the food-tax removal), so all citizens could decide the issue.
- Initiative A gives everyone a tax cut. (Billings says the income tax credit should only be given to low- and middle-income Utahns making $40,000 or less).
- Tax credits are often not taken advantage of by the very poorest Utahns, the ones who normally don't file income tax returns, yet the very ones who need a tax break on the purchase of unprepared food.
- Income tax credits would definitely cut education funding since all income tax money is earmarked for education. Cook argues that his sales tax exemption on food wouldn't harm education, since the sales tax usually goes for non-education budgets.
- Calling a special session before the election would be "highly political," the only aim to damper the initiative's chances of voter approval and harm his new Independent Party's chances in other races.
It's unlikely Bangerter would call such a session, anyway. Bangerter opposes the food-tax initiative, saying the state can't afford the lost revenue. Recent polls show the initiative, once favored by more than 60 percent of Utahns, is now favored by less than a majority. Thus, politically speaking, Bangerter and GOP legislators probably don't have to adopt Billings' plan in order to ensure a food-tax removal defeat in November.