Senate opposes plan to eliminate food tax
This is an archived article that was published on sltrib.com in 2006, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Senators amped up the level of gamesmanship Friday in a shoving match over tax cuts that continues to block progress on a state budget.

In a flurry of action, the Senate approved a minor modification of the existing income tax in defiance of Gov. Jon Huntsman Jr.'s hopes for major tax reform.

Meanwhile, frustrated Republican House leaders complained Senate Republicans had reneged on a compromise early in the week that would have not only made the governor's "flatter" 5 percent income tax possible - but eliminated all or most of the sales tax on groceries.

Senate leaders maintain they had never agreed, but merely offered a proposal to the House. Senate leaders said they will not consider completely eliminating the tax on food, because the $166 million loss in revenue would make it impossible to meet other critical state needs.

To drive the point home, the Senate passed HB323, a proposal that would not reform income tax, but lower the top rate from 7 percent to 6.72 percent, delivering a $100 million tax cut.

"This is meant as a clear indication of where the Senate is," said Sen. Dave Thomas, referring to HB323. "I want a tax cut for everyone in the state; to do that through the income tax is the most efficient way."

The Senate's action opens the door to a greater threat - no tax reform at all. Many members of the House and Senate have yet to be sold on the governor's tax reform program. The idea of just tweaking sales and income taxes to produce a cut somewhere between the Senate's $100 million and the House's $230 million has growing appeal.

Meanwhile, Sen. Curt Bramble, chairman of the Tax Reform Task Force, is working to modify the governor's plan to make it more acceptable to the Senate.

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Tribune reporter Matt Canham contributed to this article

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