Utahns — especially older adults —are poised to save some money on income taxes for the fifth year in a row.
The Utah legislature has proposed legislation that includes some of the same tax reductions Gov. Spencer Cox asked for in his budget proposal late last year. Lawmakers also want to eliminate the Social Security tax for older Utahns earning $90,000 or less, although Cox had proposed eliminating it entirely.
Legislative leaders also plan to reduce Utah’s income tax from 4.55% to 4.5%, expanding the child tax credit and adding a tax credit to businesses that provide childcare for their employees.
While the budget has not yet been approved, it isn’t final until the legislative session ends at midnight on March 7, lawmakers are already celebrating a combined $127 million in tax relief to Utahns.
“Utahns work hard for their money, and they deserve to keep more of it,” Speaker Mike Schultz said in a news release Thursday. “This year, we will build on our long-standing commitment to lowering taxes for all Utahns and supporting families. The cost of living continues to rise; by continuing to reduce the tax burden, we’re ensuring that Utah remains a place of opportunity and prosperity for generations to come.”
The proposed tax cuts are less than the $165 million the Executive Appropriations Committee set but come at a time lawmakers are looking at a “socks and underwear” budget — meaning, meager revenues and conservative spending priorities. The $38 million extra will go back into the “working rainy day fund,” lawmakers said.
Utah lawmakers have cut taxes over the last four years to the tune of $1.4 billion, according to their news release.
If a fifth year of cuts is approved, Utah’s top 1% of earners would save $17,361 a year over five years and middle-income earners — those making around $63,100 and $103,200 — would save $313 a year, according to an analysis by the Institute on Taxation and Economic Policy done for Voices For Utah Children. This year’s proposed income tax cut alone would save top earners roughly $1,900 dollars and middle-income earners $35.
Lawmakers have also proposed a $1,446 raise for teachers, a $1,000 bonus for education support staff and a 4% funding increase for school districts.
“Thanks to Utah’s robust economy and our steadfast conservative policies, we’re putting money back where it belongs—with the people who earned it," Senate President J. Stuart Adams said in a statement. “By cutting taxes for the fifth year in a row, we’re ensuring more of Utahns' hard-earned dollars stay in their pockets, all while maintaining our commitment to essential services and fostering long-term economic growth for future generations.”
Shannon Sollitt is a Report for America corps member covering business accountability and sustainability for The Salt Lake Tribune. Your donation to match our RFA grant helps keep her writing stories like this one; please consider making a tax-deductible gift of any amount today by clicking here.
