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Tax reform stirs strong citizen views
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

When it comes to state tax reform, a majority of Utahns have a reflexive answer to proposals to lower taxes and eliminate deductions: Yes, to the first. No, to the second.

A Salt Lake Tribune survey found 67 percent of Utahns would like to see the sales tax on food eliminated.

But when it comes to removing a state income tax deduction on charitable contributions, which includes church tithing, an overwhelming 82 percent said keep it.

The questions touched on only two of the dozens of issues that will emerge as the Legislature explores a revamp of the entire tax system, from property to gasoline taxes and every levy in between. A Task Force on Tax Reform hopes to pull together recommendations, if not draft bills, by the next session. It will meet again today at noon at the Capitol.

If nothing else, the sampling of public opinion on tax reform shows the Legislature has its work cut out in informing taxpayers that reformed taxes will not mean more taxes.

Worse, follow-up interviews with respondents uncovered a deep vein of cynicism that real tax reform will actually occur.

"If it was true, that's fine with me," said Gill Nielson, a retired trucker in Moab. "But how can you believe anything politicians say?"

Utah Tax Commissioner Bruce Johnson is not surprised.

"The public's cynicism is unfortunate, but not unreasonable," he said. "It comes from years of experience in watching the process. The challenge is to get the policy-makers, first, then the public, to understand the overall goals of reform and how it fits together. Not how one part affects them."

Jenifer Painter, a 28-year-old mother of two in Logan, was adamant the charitable deduction should be retained: "The main thing we need to do is help each other and those who are less fortunate."

Nielson agreed, "I'd rather see the charitable institutions get it than the government."

Some tax reformers argue that eliminating deductions and exemptions, possibly as part of a flat-tax plan, would mean most taxpayers would pay about the same income tax that they do now. Though doubtful, Painter and Nielson both said they would be willing to consider an overhaul under those circumstances.

Though skeptical it would actually happen, the possibility of eliminating the sales tax on food hit a nerve with respondents.

After admitting she cannot fathom the tax system, Connie Neilson in Grantsville, said, "I do know one thing. For me to buy food is hard enough as it is. The extra tax percentage on food leaves me even less to put out for things that I need."

Most of the Utahns interviewed said they would enthusiastically support a potentially controversial proposal to extend sales tax to services - from haircuts to landscaping - if the sales tax on food were eliminated.

Proponents of the services sales tax say it would broaden the tax base in what has become an increasingly service-based economy. It would also shift the sales tax burden, shouldered disproportionately by the poor, more equally on the wealthy who use far more services.

But again cynicism colored interviews. "They're dreaming," said Nielson. "The rich always get off easy."

That feeling extends to Rep. Roz McGee, D-Salt Lake, who wonders what happened to the so-called Jones-Mascaro proposal that has been put forward for the past four years. The proposal would shift a greater tax burden to the wealthy, and reduce taxes for many low- and middle-income families.

"We have yet to hear from Jones and Mascaro because the flat-tax has been pushed - and I emphasize pushed - forward," McGee said Wednesday.

The creation of Rep. Pat Jones, D-Holladay, and Rep. Steve Mascaro, R-West Jordan, the proposal would phase out state income-tax exemptions beyond two per household and expand the tax brackets, among other things.

Jones said Wednesday that today she will join the task force's subcommittee on income tax, though she will not be a member of the task force as a whole.

"We hope to point out the pluses and minuses of a flat tax. There are a lot of minuses," she said.

People care passionately about paying taxes, Johnson said, "But a large number of very sophisticated and intelligent people will turn off the minute you say, 'Tax.' It's very intimidating to them."

Sen. Curt Bramble, Senate chairman of the Tax Reform Task Force, said Wednesday the panel will take its discussions around the state beginning in late July for a series of town meetings.

In a interview, Bramble joked that citizen education might be the least of the task force's problems. "Only about four lawmakers understand taxes - and they're CPAs [accountants]."

Total revamp? Sales taxes and charitable deductions are among issues before legislators
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