What, if anything, will come of Utah tax reform

By Frank Pignanelli & LaVarr Webb
Published: Saturday, Oct. 22, 2005 5:06 p.m. MDT
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Pignanelli: "Neener, neener, neener, neener!" Rep. Pat Jones is entitled to shout this timeless childish jeer, but overabundant graciousness and discretion prevent her from doing so. Since I possess neither of these qualities, I will perform the taunting for her.

The tax plan recently unveiled by Gov. Jon Huntsman Jr. is remarkably similar to the famous Jones-Mascaro proposal haunting legislative hallways for many years (Republican legislator Steven Mascaro is the co-sponsor). As with Jones-Mascaro, Huntsman's plan provides relief to lower- and middle-income families, limits deductions to five dependents and provides recognition of charitable donations.

The Tax Reform Task Force continually refuses to hear testimony regarding Jones-Mascaro. However, with the addition of a high-profile co-sponsor, tax policy gurus, lawmakers and political observers are now fawning over the Huntsman-Jones-Mascaro plan. This is wonderful vindication for the two politicians. (Warning to readers: As this legislation moves through the process, I will consistently provide reminders of its true parentage — to the point of nausea.)

Huntsman is advocating several important objectives, including removing burdens on individuals and families with limited wages. His provision of credit for religious and charitable donations acknowledges political and practical reality (nonprofit organizations supply needed services). Capping the number of family exemptions is controversial but impacts less than 10 percent of Utahns. Much of the popularity of Jones-Mascaro is from this feature, which sends the important signal Utahns who are utilizing the public education system more than others must participate in tax reform. Huntsman is focused on a 5 percent flat rate, which helps Utah in comparison to other states — a component of the governor's economic development plan of recruiting businesses and industry leaders.

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The critical element in all this activity is beyond tax policy minutia. Huntsman was a marvelous gubernatorial candidate who frequently made bold statements, undertook risks and offered substantive recommendations — especially for a Republican. As governor, Huntsman has been overly cautious and has assumed few controversial undertakings (the Legacy settlement is a noteworthy exception). The tax scheme provides Huntsman an opportunity to take a position and fight for it in the legislative and public arena. This will be no easy task as there are a number of powerful organizations that have legitimate concerns with his plan. But it is vital that Utahns are confident the person to whom they have entrusted their schools, roads and job creation will not shrink from a conflict.

• State Rep. LaVar Christensen will be soon announcing his candidacy for the Republican nomination for the 2nd Congressional District. Christensen has suffered many jokes at his expense because of his renowned verbosity and conservative views. Although we disagree on many items, Christensen and I are longtime friends (politics does make strange bedfellows) and know him to be personable, well-read, substantive and hard-working. He will add an interesting element to the election.

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