WWW.UTAHTAX.ORG
September 22, 2008
MATT D. FRANDSEN, B.S. M.S
Today, the Rings True Coalition submitted an initiative application to the Utah State Lt. Governor’s Office. It is our intent to help concerned citizens place an initiative on the ballot in
Citizens have come to realize that our leaders have profoundly wronged taxpayers by the recent tax reform commonly referred to as the “5% Single Rate.” Polls have shown that an overwhelming majority of Utahns preferred income tax surpluses to be used for public schools. Today’s economy cannot support a tax cut for the very wealthy. Modification of the single rate system will not adequately address the problems.
Reestablishment of Income Tax Based on New Graduated
System for Tax Rebalancing & Upholding Education Funds.
- Repeals the Single Rate Income Tax Structure (Flat Tax).
- Creates a graduated seven-rate tax structure and provides additional tax relief to low-income working married families and single filers.
- Rebalances the income tax burden and increases progressivity.
- Shifts 5 1/2% tax burden from middle-class to wealthiest.
- Median individual taxpayer -- 25% tax cut = $110/yr.
- Median married taxpayer -- 20% tax cut = $400/yr.
- Retains critical funding for education: it restores between $270-325 million for public education in taxyear 2010.
Repeal of Single Rate System –Problems:
- Huntsman’s tax reform did not correct the high tax burden on middle-class income tax filers–those who have been paying the top tax rate for over 30 years, called “bracket creep.” (Huntsman’s Income Tax Reform shifted only 0.5% of tax burden.)
- Despite being called a “tax cut” - approximately 100,000 taxpayers of moderate incomes and retirees will pay greater taxes next April 15th.
- The super majority (72%)of our citizens wanted all or most surpluses to be used for education, rather than treated as tax rebates.
- Our new tax code is neither transparent, nor easy. It is not fair and does not adequately decrease revenue volatility. An increase in economic development cannot compensate for revenue lost by tax cuts.
Key Provisions of Proposal:
- Redefines tax base as taxable income rather than
federally adjusted gross income. - Retains all tax deductions and additions of current tax code. Phases out provisions of tax credits eliminated.
- Provides a facelift to traditional tax rates: calculated at 3 percent through 7 percent with a top rate of 8.25 percent.
- Adjusts tax brackets realistically:
- Top tax bracket will move from $11,000 to $275,000 taxable income.
- Brackets will now adjust with consumer price index (CPI).
- Provides additional tax relief for working, married families and single filers at the lowest income levels by waiving 3% tax under $10,000 of taxable income.
- Check your Income Tax under new proposal. Then follow the link to Gov. Huntsman's 5% tax calculator for comparison.