Tax-cut compromise falls apart
With the 2006 Legislature set to end March 1, both House Speaker Greg Curtis — the main legislative advocate for removing the food tax — and a spokesman for Gov. Jon Huntsman Jr. said there is still plenty of time to settle on a tax-cut package.
But if Thursday was any indication, they will need every one of those days.
"We recognize this is a complex negotiation, and we are still optimistic," said Mike Mower, the governor's deputy chief of staff and spokesman. "We're still very supportive of the compromise package, and we'll continue to work with individual Senate and House members as well as their leadership team."
Mower said the compromise brokered by the governor — taking the state's share of sales tax off food and lowering the top income tax rate from 7 percent to 5 percent — remains "one of our top priorities."
Curtis, R-Sandy, said House and Senate Republican leadership had come to an agreement Thursday morning on "broad foundation pieces" for the budget, including a compensation package for state employees. But Senate President John Valentine, R-Orem, said the agreement was only about salaries.
Along with the lack of votes, the meeting carried an abnormal tension. The Senate Republicans, who caucused for a second time in the afternoon, arrived late and then waited more than 20 minutes for House Republicans to arrive. Then there was very little debate, and about the only substantial discussion was between Curtis and the committee co-chairman, Sen. Lyle Hillyard, R-Logan, who sniped at each other because of a request from Curtis to move through the motions a little more slowly.
After the meeting, House Republicans left quickly, while Senate Republicans remained seated and looked almost stunned.
The compromise, which stalled after being reported Thursday by the Deseret Morning News, totals about $190 million. The House GOP caucus supports a $230 million tax cut, but the package is nearly double the $100 million backed again Thursday by Senate Republicans.
What agreement did exist seemed to fall apart in the caucus meetings. Neither the Senate nor House moved from its position, and they even seemed to strengthen their respective stances.
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