Utahns are not in favor of a substantial cut in state taxes, a new Deseret News/KSL-TV poll shows.
Only a quarter of Utahns favor the Legislature giving a tax cut of $35 million or more — a position taken by the House Republican caucus — pollster Dan Jones & Associates found.
Most of the rest of those surveyed either want no tax cut at all or favor GOP Gov. Mike Leavitt's suggested $5 million tax reduction for next year, Jones learned.
Last week Republicans in the House and Senate were arguing with Leavitt over the size and type of tax relief the 2001 Legislature should adopt.
Early in the session, the 51 House Republicans, with only a few dissenting votes, approved putting aside $35 million for tax cuts. That amount was raised Tuesday when $40 million was set aside for tax cuts.
Democrats oppose such large tax cuts. And Senate Republicans haven't taken caucus votes on taxes yet, but Leavitt was meeting with Senate GOP leaders privately last week pushing his $5 million tax reduction, questioning the wisdom of reducing taxes by $40 million or more.
Leavitt has said his budget remains as proposed.
Before lawmakers adjourn Feb. 28 the $7 billion 2001-2002 budget will be set and tax cuts decided.
Jones found in a survey of 404 adults conducted statewide Feb. 5-7 that 38 percent said they want no tax cuts this year at all, preferring that public and higher education and other state programs get budget increases with the nearly $700 million in extra revenue coming next fiscal year.
Fourteen percent said they want the $35 million tax cut, and 10 percent would like a tax cut greater than $35 million. House Republicans upped their tax cut by $5 million after Jones was already in the field with the survey.
Three percent of those surveyed mentioned some other alternative, and 4 percent didn't offer an opinion.
Jones found that of Republicans questioned, 28 percent don't want any tax cut, 38 percent favor the proposed $5 million reduction, 19 percent prefer the $35 million proposal and 11 percent want even more. Of those who identified themselves as very conservative, 35 percent favor the $5 million tax cut proposal, 22 percent support the $35 million proposed cut, 20 percent do not want any tax reduction and 16 percent prefer a tax cut more than $35 million.
Some 57 percent of those surveyed who identified themselves as Democrats want no tax cut, while just 17 percent support Leavitt's $5 million proposal, 10 percent favor a $35 million tax cut and 6 percent prefer a larger reduction.
Some House Republicans worry that if nearly all of the $700 million in extra revenue — part of it in one-time surpluses already in the bank, part of it in projected growth in state revenues — is spent, base budgets will grow significantly, meaning a bigger government.
In speaking about putting aside $40 million for tax cuts and another $40 million for an "education savings account," House Assistant Majority Whip Greg Curtis, R-Sandy, said if the money isn't taken off the budget table, "it will just be spent" on state programs.
Senate Republican leaders say they aren't tied to the House figures. But Senate Assistant Majority Whip Pete Knudson, R—Brigham City, said he'd be surprised if the tax cut didn't end up in the $40 million range.
But other Democrats and Republicans say long-term economic forecasts show the state could be facing revenue shortfalls in four or five years. They don't want to cut taxes now only to have to raise them or trim state programs in the near future.
"There's always a concern that you don't play a ping-pong game with the revenue system," Knudson said.
Republicans favoring the $40-million tax cut haven't definitely fixed their eyes on any one tax or taxes.
But a number of House Republicans appear to favor a bill offered by Rep. James Ferrin, R-Orem. Ferrin, a financial consultant, wants to cut the state's capital gains tax, now at 7 percent, to 6 percent. That would save $1,000 in tax on a $100,000 net capital gain transaction and cost the state $26 million overall.
Leavitt favors smaller tax cuts totaling $5 million — one proposal that would index state income tax brackets to inflation starting this year and another bill that would drop from state tax rolls Utahns who fall below the federal poverty level. Those bills seem to have broad support.
E-mail: bbjr@desnews.com