Removing the grocery tax would cause a $167 million loss in tax revenues that would make other legislative goals impossible, Valentine said, including road building and increased education funding.

"I'm getting many messages that these two are adequately taken care of before we cut taxes," he said.

The $100 million in cuts would come from sales and income taxes, Valentine said, but the Senate Republicans have yet to decide the split. "They are leaving it up to leadership to negotiate it with the House," he said.

Instead of removing the sales tax on food, Valentine said the caucus "generally supports the notion of a sales tax credit for food" in order to benefit low-income families.

The Senate's $100 million tax cut falls between Gov. Jon Huntsman Jr.'s $60 million proposal and the House Republican's $230 million plan to whittle down a state revenue surplus of more than $1 billion.

But the Senate's opposition to removing the grocery tax runs counter to House leadership and the governor's aspirations. Huntsman and Speaker Greg Curtis have spoken passionately on the need to remove the tax. And a majority of Utahns agree.

"The governor remains committed to providing immediate relief for taxpayers at the check-out counter - not something that offers relief just once a year - if they fill out a tax return," said Huntsman spokesman Mike Mower.

"When you buy that loaf of bread and gallon of milk, we want it to be tax-free," he added.

House members expressed surprise that the Senate was offering even $100 million in breaks.

"It's a move in the right direction," said Rep. Wayne Harper, who was House chairman of the Tax Reform Task Force.

House members said, raw numbers aside, the Senate proposal exposes philosophical differences between the two Houses.

"We are growing government too fast," said House Majority Leader Rep. Jeff Alexander in support of the $230 million figure. "Our tax cut is not going to starve government."

The governor, the Senate and the House want to use the tax cut as an engine for economic development, but differ how to apply it.

"The House agrees on one thing, the vast majority of tax cuts must go into the pockets of individuals, not businesses," said Harper.

The House's proposal (HB109) would cost the state $167 million in revenues (about 70 percent of projected general funds) and lead to a $14 million increase in sales taxes to business. The proposal has

yet to address revenue loses to local governments and Utah Transit Authority.

The Senate's approach of a refundable tax credit on food result in a tax cut of $69 million to $100 million, depending where the poverty level is set.

Such a refund would amount to $75 to $86 per person per year.

But critics say the refund would require that families file a tax return, even if they owe no tax. It also would cost money to administer.