Walker finally airing tax proposals

Long-overdue reform study will be a start for Huntsman

Published: Friday, Nov. 19, 2004 10:42 p.m. MST
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Outgoing Gov. Olene Walker will release her in-depth state tax reform recommendations Monday, months later than her original deadline and only six weeks before leaving office.

The long-overdue study will be at least a starting point for Gov.-elect Jon Huntsman Jr., a fellow Republican, and the new GOP-controlled Utah Legislature to begin discussing how to make state government's revenue sources more stable, fair and equitable. But it comes too late to be a debating point in the 2004 governor's race, a promise Walker made when she formed her task force a year ago.

The plan isn't intended to either raise or lower the overall amount of money collected through taxes, Walker has said. Instead, it is an attempt to make adjustments to the the state's tax base, including income and sales taxes.

And there are indications she may recommend imposing a statewide property tax, lowering other state taxes at the same time.

"We tried very hard to make (her tax proposal) revenue-neutral," the governor said Thursday during the taping of her monthly televised news conference on KUED Channel 7. "Because we wanted people to focus in on the policy, not that we were increasing or decreasing taxes."

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Walker will meet with Huntsman and legislative leaders Monday to detail her plan, calling a press conference later in the day. Huntsman's chief of staff, Jason Chaffetz, said Friday it's premature to say whether the new governor will come up with his own tax reform proposal, endorse Walker's or meld her ideas into his own.

"There are a whole lot of ways to tackle this," Chaffetz said. "It's certainly no easy start for a new governor."

Huntsman, whose campaign focused on economic development, announced after he was elected that enacting tax reform would be his top priority during his first year in office. He will be sworn in on Jan. 3.

Walker, who was defeated in the May state Republican convention, announced her special tax task force a year ago. She had not yet announced her own candidacy at that time but said tax reform should be part of the 2004 debate for governor.

Even after her defeat, Walker said she'd make her tax recommendations public in August, so the candidates for her office could respond to them. But in late summer, Walker said the study was taking longer than expected.

While Huntsman and Democrat Scott Matheson Jr. talked in vague terms about tax reform during their general election campaigns, changing Utah's tax system was not a major campaign theme for either man.

In fact, Huntsman was caught off-guard earlier this month when Walker said she would make specific recommendations in her report. Huntsman thought Walker would make only general statements about Utah's tax system, how it could be simplified and provide more balance.

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