Written by Sutherland Institute
January 16, 2020
FOR IMMEDIATE RELEASE:
SALT LAKE CITY—In an effort to bring more complete information and greater transparency to the debate, Sutherland Institute has launched an information campaign: The truth about Utah’s tax cut. On Thursday, Jan. 16, newspaper ads, radio spots and social media posts will begin with the aim to inform Utah citizens about the recent debate surrounding tax reform.
Do you know the facts?
The current tax bill:
- Offers hundreds of dollars to middle- and low-income families in 2020 to cover increases in gas and grocery taxes – no paperwork required
- Provides ongoing tax credits for groceries and for dependents
- Helps those in intergenerational poverty
- Puts $510 per year back into the pocket of the typical Utah family
- Reduces the state tax on Social Security
- Reduces taxes overall by $160M annually
- Gives a net tax cut to nearly 90% of Utahns
- Increases funding available to public schools
- Stabilizes and enhances funding for social services, housing, air quality and low-income healthcare programs
“Petition efforts are an important option in the public policy process,” said Rick Larsen, Sutherland president and CEO. “But all too often, we see the tactic of presenting partial, inaccurate or emotional information, to motivate citizens to sign on the spot. We believe the process – and the citizens – deserve greater respect.
“Sutherland’s concerns have to do with the fact that the increase in sales tax on food is being highlighted at the exclusion of other important elements within the legislation, including a significant overall tax cut for the majority of Utahns, restoring the dependent exemption, an Earned Income Tax Credit (EITC), and additional tax relief to protect lower income families. In addition, claims that the process was rushed or lacked transparency are just simply not true,” Larsen said.
“Citizens have the right to challenge legislative action, but they should do so with all of the facts in mind. Otherwise, they risk hurting the very people they seek to help. A need to reform Utah’s tax code has been recognized for years and is becoming more urgent. Rapid growth, changes in consumer spending favoring services over goods, and technology, are all impacting reliable revenue sources that pay for infrastructure, public safety, Medicaid and even education. This Legislature had the wisdom and courage to look down the road – during a time of prosperity – and take steps toward addressing this complex issue. Opponents should not take inappropriate advantage of an inherently complex process – one that received more focus, public comment and revision, than a legislative session would have afforded.”
Sutherland urges citizens to become familiar with all of the facts before signing a petition.
“We have confidence in the ability of informed Utahns – given all the facts — to make sound decisions,” Larsen concluded.
A closer look at the numbers:
- Utah Taxpayers Association: Tax Reform – Myths, Misunderstandings and Falsehoods
- AARP Utah: Utah’s tax reform plan is on the right track
- Natalie Gochnour: How the Utah Legislature’s tax proposal will assist the most vulnerable
- Sutherland Institute: A new funding system may be best for Utah’s schools
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