Utah is known as a family friendly state in most regards, with relatively low crime, nice recreation, decent schools -- a great place to raise the kids overall. It also is infamous for spending fewer education dollars per pupil than other states while generating average scholastic results, including test scores.
Despite that rock-bottom per-student expenditure ranking -- and with the state in the throes of massive infrastructure enhancements -- government leaders must keep in mind that residents of the Beehive State shoulder the heaviest tax burden in the West. They should consider shifting the load, at least slightly, onto business interests that have enjoyed a 10-year downward trend in their tax tribulations.That is not to suggest any sort of drastic change in policy that dumps on businesses to charge the public coffers. Utah's private and public fiscal fitness is among the best in the nation because of its relatively robust business climate. That, of course, is a boon to citizens.
But Utah's large average family size makes for sizable household tax expenditures. Families carry the greatest tax burden among six comparable western states, a ranking the state has maintained for some time. Sky-rocketing appreciation has kept property tax pressures firm in spite of some cuts, and Utah has a hefty sales tax on food and other necessities.
The net result is that household taxes increased 20 percent from fiscal year 1995-96 to 1997-98, but household income only went up 17 percent. From 1990 to 1997, Utah's tax revenue grew by 43.9 percent, the seventh highest increase in the nation. Families are losing ground.
While there is no reason to panic, public-policy wonks and elected officials should take a close philosophical look at the state's overall tax condition. While there is some truth to the notion that businesses really don't pay taxes -- people do -- the reality also is that three-fourths of Utah's business taxes are paid by out-of-state owners and not by Utahns.
Those same owners benefit from a young, well-educated work force. Perhaps they should be providing a bit more of the capital to educate local youngsters and lighten the tax loads being carried by strapped Utah households.