This would be on top of the previously approved $70 million cut taken from the state sales tax on unprepared food. That 2 percentage point reduction takes effect Jan. 1.
It also would be in addition to $20 million in tax cuts for businesses.
The Legislature originally planned for another $70 million in tax cuts, but it got tied up in questions of income-tax reform and problems with projecting how much revenue would be lost if the tax system were changed.
Gov. Jon Huntsman Jr. and GOP legislative leaders now have agreed on personal income-tax cuts through a dual tax system in which residents could choose between the current tax system or a flatter tax that would have a lower rate but no deductions.
Some legislators say they will push for more than a $70 million cut as part of the tax reform, possibly as much as $120 million.
"You bet there will be efforts to increase that tax cut," Rep. Greg Hughes, R-Draper, said Wednesday.
In June, the Utah Tax Commission said the state ended the last fiscal year with a $351 million tax surplus in the state's two main funds, the largest tax surplus in Utah's history.
Some legislators are saying that should now be matched with the largest tax cut in Utah's history.
"Whether in the special session in September or in the 2007 Legislature, there will be efforts to lower that (income) tax rate," said Hughes, who chairs the informal Conservative Caucus, which numbers around 30 members of the 56 Republicans in the House.
"The $70 million is the lowest hurdle - it should be higher," he said. "The lower the rate, the more competitive Utah can be in economic development. And that is what we're looking to do."
Pushing tax-cut votes just weeks before November's legislative elections "is a wrong-headed concept," said House Minority Leader Ralph Becker, D-Salt Lake. "We are dealing with long-range tax policy. We should deal with it on its merits, not right in the middle of a campaign year."
"We don't support any tax cut in a special session," said Susan Kuziak, executive director of the Utah Education Association, the state's biggest teachers union.
