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Opinion: I do not need a tax cut

This would be the fourth year in a row that our flat (sadly, not progressive) income tax rate would be cut. I personally would benefit. But I, and other Utahns who earn far more than my husband and I, who would benefit the most, do not need a tax cut

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Not all Utahns want, or need, a tax cut this year, writer says.

Not all Utahns want, or need, a tax cut this year, writer says.

Adobe.com

As a (retired) family economist, I am concerned about Sen. Chris Wilson’s SB69 (Income Tax Amendments) that would lower the state’s individual and corporate income tax rate, saving (mostly high-income) Utahns and corporations about $160 million. This would be the fourth year in a row that our flat (sadly, not progressive) income tax rate would be cut. I personally would benefit. But I, and other Utahns who earn far more than my husband and I, who would benefit the most, do not need a tax cut.

Low-income Utahns would get no benefit because most don’t owe state income taxes, due in part to the federal standard deduction, which exempts the first $27,700 from federal income tax for married couples filing jointly, and thus, from Utah income taxes. The benefit to middle-income residents would be minimal.

The reduction in state funds would be better spent on addressing the shrinking Great Salt Lake, reducing air pollution, affordable housing, addressing homelessness and other community needs. We have so many needs to address; reducing taxes on the wealthy is not one of them.

Bills with financial implications must undergo a fiscal analysis. I encourage your reporters to inform readers about how various income groups and corporations would benefit (or not) from cutting income taxes. 

Jean M. Lown, Ph.D.

Logan