During the holidays, normal people are usually able to slow down a bit. Not so politicians. Action has been fast and furious both nationally and locally. In keeping with the holiday spirit, politicians have been playing either Santa or the Grinch — depending on one’s perspective.
After six months of grueling town hall meetings and public hearings, the Legislature passed comprehensive tax reform in a special session last Thursday. The reform package was a Christmas tree of both gifts and new obligations, but provides an overall tax cut. The objective was broadening the tax base and balancing the revenue system. What will be the political fallout as we enter an election year?
Pignanelli: “Tax reform is just taking taxes off things that were taxed in the past and putting taxes on things not taxed before.” — Art Buchwald
Major readjustments to the tax system are akin to remodeling a home (i.e. internal family squabbling, frequent financial modifications, deadlines postponed, etc.). Despite these emotions, the effort confirmed part-time lawmakers are brave politicians. They make tough decisions while encountering constituents, amidst balancing professional and family demands.
Having attended most hearings, I can unequivocally declare this tax reform underwent an exhaustive process to solicit input from citizens. (Attacks on the process are unwarranted.) But controversy and strong feelings of opposition remain among various special interest groups and some legislators. Democrats contest the reduction of revenue to the Uniform School Fund, but the imposition of the full sales tax on food is fostering bipartisan antagonism.
Utahns will feel increases at the gas pump and grocery store more directly than an income tax reduction. This will engender reaction, compounded by adversaries airing concerns regarding education funding and regressive taxation. In the upcoming election year, lawmakers must energetically explain their position before voters to diminish any negative repercussions.
As with home improvement, tax reform never really ends.
Webb: I congratulate Utah’s legislators for tackling substantive tax reform and getting it done against strong opposition. It is a solid package that will benefit Utahns for years to come. It will need further work in future sessions, as all such legislation does. But it is excellent progress on the road to modernizing Utah’s tax structure.
Low income people come out the big winners. The benefits they will receive are far greater than the small amount of additional food tax they will pay. Opponents can pick apart the legislation and point to elements they dislike. But it should to be viewed as a package — and it’s a very good package.
This effort was not rushed and citizens will see benefits more quickly because lawmakers did the job this year.
The wonder is that lawmakers got it done amid withering criticism from many fronts, especially the news media. But they forged ahead and displayed real political courage. When the dust settles, voters will be better off than before and no one will be voted out of office over tax reform.
Former governor and current gubernatorial candidate Jon Huntsman Jr. wrote a column in this newspaper objecting to the restoration of the sales tax on food which he had eliminated as governor. Within days, the remaining announced GOP candidates stated similar concerns. Do they have a point and what are the political ramifications?
Pignanelli: Huntsman displayed a brilliant strategy as the first high profile candidate to weigh in on tax reform. This reassured Utahns that despite his absence as ambassador he understands current issues. The quick response by the other contenders validates Huntsman’s tactics, while underscoring angst with the food tax shared by many Republicans and Democrats. This may evolve into a major issue in the 2020 election. Candidates are on notice they need a strong message on their position.
Webb: It has been fun to watch gubernatorial candidates run for the weeds on tax reform, scared of voters. Truth is, whoever is elected next November will be secretly thanking lawmakers for doing what had to be done to improve the structural imbalance in the tax system. It will make governing far easier for the next governor.
There are better ways to help low-income people than giving high-income taxpayers buying $24-a-pound steaks a food tax break costing hundreds of millions of dollars and creating a terrible imbalance in the tax system. The Legislature’s targeted approach to help low-income people is far superior and will provide far higher financial benefits than the small amount low-income people were saving with the reduced food tax.
The U.S. House of Representatives will likely impeach President Trump next week. Have several weeks of televised committee hearings altered impeachment support or opposition among Utahns?
Pignanelli: The hearings did not alter public opinion. However, because President Donald Trump is incessantly tweeting more about impeachment, and less about the roaring economy, he is impacting public perception.
Webb: Impeachment has made life miserable for Democratic Congressman Ben McAdams, but otherwise will help ensure an election win for Trump in Utah. Utahns are smart enough to know that Trump’s unwise talk and actions with regard to Ukraine did not rise to the level of high crimes and misdemeanors.
The aid to Ukraine was delivered. There was no investigation of Biden and his son. There was no ultimatum. Ukraine did not feel threatened. If there’s a crime there ought to be a victim. This is dumbing down impeachment to a level any president will be vulnerable over policy disagreements.
If you hate Trump, just vote him out of office next November.
Republican LaVarr Webb is a political consultant and lobbyist. Email: lwebb@exoro.com. Democrat Frank Pignanelli is a Salt Lake attorney, lobbyist and political adviser. Email: frankp@xmission.com.