Lawmakers will gather today in a special session to debate two tax issues they say will be pivotal to Utah's economic growth through improvements in transportation and the first step in overhauling the state income tax.

Though majority Republicans expect the measures to pass, the planned one-day session will not be without controversy.

The income tax proposal, which Gov. Jon Huntsman Jr. calls a first step in comprehensive reform, would broaden the brackets of the existing code. It also would allow taxpayers the option to pay at a flat tax rate of about 5.4 percent, but without deductions or credits. The new income tax structure would result in a $75 million tax cut.

Critics say the proposal is not real reform because less than 5 percent of filers, mostly the rich, would benefit from the flat-tax option, yet they would carry off $35 million of the tax cut. The vast majority of Utahns would stay under the "traditional" bracketed structure with its top rate of 7 percent. That majority would get $40 million of the tax cut.

Though Huntsman promises the state will reap much more education revenue through economic growth, many in the education community are skeptical the gamble will pay off and, if it does, that the Legislature will direct the money to schools.

In a last-ditch effort to block the tax cut, Utah PTA members spent Monday calling their representatives and asking for a cut to class size instead.

With $75 million, the state could pay the salaries of more than 1,200 new teachers and simultaneously reduce class size in kindergarten through third grades by four students in one year, according to the Utah Education Association.

Polls have found that most Utahns support putting the surplus money into education and transportation, rather than a tax cut.

"This is not really a tax change that makes a huge difference, but it will make a huge difference if we can lower the class sizes for our children," said Ronda Rose, legislative vice president for the PTA.

"Every time the revenue is increased, they do a tax break instead of helping schools," Rose said.

Based on the teacher-to-student ratio, Utah has the largest class sizes in the nation.

State School Board member Thomas Gregory said although the governor sees education as a key to economic growth, "not everyone [in the Legislature] seems to be as devoted."

Gregory, who is employed by Proton Communications, discussed Huntsman's plan on his blog, writing that "education has no guarantee" it would get more money under the legislation. "Sorry but I don't trust the legislature to not shuffle the piles to divert the dollars to other projects."

Rep. John Dougall, an architect of the so-called dual-track income tax, acknowledged that public education cannot depend on getting any funding growth. "There are no such things as guarantees," he said, adding, "the Legislature consistently invests more and more money in public education."

Lawmakers are expected also to pass a bill that would allow counties to poll voters on whether they would like to raise sales taxes by up to a quarter-cent to pay for transportation projects.

The bill mandates the ballot question to ask whether the voter agrees to pay the tax increase for "corridor preservation, congestion mitigation, or to expand capacity for transportation of regional significance."

Supporters of the transportation tax held a noontime rally Monday at the Gallivan Center in Salt Lake City, where elected officials, business leaders and trucking representatives lined up to say the tax is crucial to economic health.

"Companies are not going to move to a state that has gridlock," said Steve Densley, chairman of the Provo-Orem Chamber.

The Salt Lake County Council already has placed on the ballot a measure that would raise property taxes to pay for early completion of four TRAX lines: West Valley City, Mid-Jordan, Draper and a line to Salt Lake City International Airport.

The county could replace that on the ballot with the sales tax question. But there is no assurance all four TRAX lines would be completed by 2014, which the Utah Transit Authority had promised under the property tax scenario.

But Sen. Ed Mayne, D-West Valley City, said west-side Salt Lake County cities feel betrayed. "We're looking to try to alleviate congestion on the west side, then all of a sudden Utah County decides it has problems," he said. "Utah County hasn't been doing much for its own transportation problems up to the last couple of years."

Sen. Sheldon Killpack, R-Syracuse, argues that transportation needs should be looked at in a statewide context.

The potential delay of TRAX construction has angered some Salt Lake County officials. County Councilman Joe Hatch promised Monday to hijack the county's support for a sales tax proposal unless the measure provides enough money for all four TRAX extensions.

The move is House Speaker Greg Curtis' way of hurting the county, Hatch said of the Sandy Republican.

Hatch, a transit advocate, says he may lobby Salt Lake County voters to reject any plan that paralyzes TRAX. "I could probably cause it to lose a few percentage points off the top," he said. "It needs a 75 percent vote in Salt Lake City. Without unanimous support of the [Democratic] leadership, it doesn't get that."

gwarchol@sltrib.com

phenetz@sltrib.com

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DEREK JENSEN contributed to this report.

This afternoon's plan

Lawmakers have an ambitious agenda for today's special session:

They intend to approve a new "choose your own" income tax, which would result in a $75 million tax cut. More than nine of 10 households would realize an average

savings of $67.

They also plan to authorize counties to increase sales taxes 0.25 cents (25 cents per

$100 purchase) to pay for transportation and mass transit. The Utah Taxpayers Association estimates the change would increase an average family's tax bill by $47 annually.

Want to give your 2 cents?

The Revenue and Taxation and the Transportation committees will meet today at 9 a.m. in advance of the special session set for 2 p.m. It will be the first and last opportunity for the public to comment on a transportation proposal to allow counties to increase sales taxes to fund projects, including roads, mass transit and airports. The meeting is scheduled for Room W135 in the Legislature's West Building in the Capitol Complex.