A task force of legislators and state officials is debating the merits of a flat tax tied to eliminating the property tax exemption for homes and ending the income tax deduction for charitable donations. Huntsman says he prefers a "flatter" income tax than the current state rate, but balks at some task force members' suggestion of a 4 percent rate for every taxpayer.

At his monthly televised KUED news conference Thursday, Huntsman said he is worried a single income tax for all Utahns would end up hurting low-income workers and benefiting the wealthy. Instead, he supports a "variable" tax rate for different income levels - a "fairer, simpler, flatter tax."

"There are different ways to phase in tax policy so that you don't leave those at the lowest end paying more than they should be paying," Huntsman said. "I want to make sure that whatever we do is fair, not putting a burden on those who are [at] the lowest end of the income category."

The task force has been meeting in daylong sessions for the past month, reviewing ideas first proposed by former Gov. Olene Walker late last year. The task force started with a proposed flat tax, taking all deductions - including the charitable-giving tax break so popular with Utah's religious taxpayers - off the table.

Leaders of The Church of Jesus Christ of Latter-day Saints issued a statement last month urging legislators to continue the deduction.

"For the overall good of the citizenry, the state tax system should continue to provide tax deductions for charitable giving - including religious contributions," church spokesman Dale Bills said. "Charitable contributions help provide for society's poor and needy, education and the arts, and other important social needs."

Huntsman says he is waiting to see how the numbers are crunched before he will take a position on cutting the so-called "tithing deduction." The governor notes nationwide studies show that such deductions have little impact on actual giving. And, he said, the larger goal of tax reform is to make Utah more competitive with surrounding states. Colorado has a flat income tax with no charitable deduction. Wyoming has no income tax.

Despite the support of Utah churches and arts organizations for the charitable donation, Huntsman says state leaders have to weigh the greater good.

"Elected officials have to remember their duty and obligation as being elected by all the people in determining what survives and what doesn't at the end of the day in tax policy," Huntsman said.

Provo Sen. Curt Bramble agreed with the governor. The co-chairman of the Tax Reform Task Force says legislators are looking at ways to balance a flat tax with adjustments in property tax rates and limited deductions to create a fair tax system for all Utahns. Bramble says the church statement on the tithing deduction will have less influence on lawmakers than positions church leaders have taken on moral issues.

"Nothing is off the table yet," Bramble said. "We recognize where the church is at. But we are moving the agenda. There really seems to be some political momentum to present a far more attractive package to businesses that are considering moving to Utah."