House Republicans debate 2 tax bills

Published: Wednesday, Jan. 24, 2007 12:05 a.m. MST
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The harsh reality of just what it will take to give a $300 million tax cut hit some House Republicans Tuesday as they debated two new tax bills.

One measure would remove unprepared food from the sales tax base of the so-called "boutique taxes," like the ZAP, resort town and transit special sales taxes.

The other measure, HB123 would remove the final 2.75 percentage points of the state sales tax on unprepared food.

It would reduce both the personal income tax rates of the old multi-exemption income tax and the new flat-rate income tax.

If ultimately both bills were to pass into law, they would together cost around the $300 million in tax cuts that House Republicans voted last month to give in the 2007 Legislature.

But in an open caucus Tuesday, more than a few of the so-called moderate Republicans were saying that education had to be taken care of before tax cuts can be decided upon.

"In my area, the public schools are crammed" with students, said Rep. Jim Bird, R-West Jordan. "You can't put another portable (classroom) on the grounds, it would violate zoning ordinances because you don't have enough bathrooms; the kids have no place to play at recess."

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Rep. Kory Holdaway, R-Taylorsville, a school teacher, said some people believe that the House GOP caucus (of 55 people) is locked in on the $300 million tax cut.

But, he said, there really wasn't 38 votes (a majority in the 75-member House) for the $300 million cut when votes were taken last month.

Rep. Mike Noel, R-Kanab, said he wanted to remind House Republicans just who was providing the record-setting $1.6 billion in surplus and new, ongoing tax revenues.

"Are we going to give any tax cuts this year? Look to your conscience. Citizens have overpaid their taxes. Let's look to give them back some of their money," Noel said.

Senate Republicans met in a closed caucus Tuesday, and heard a report on a joint leadership meeting this morning between House and Senate GOP leaders. Senate President John Valentine, R-Orem, said he told his caucus the leaders didn't get beyond requesting a price tag from staff for a long list of possible tax cuts, including property, income, business and the sales tax on food.

"Just about every one you've seen this session, " Valentine told reporters. "We just said, 'Okay, let's put this all on the table.'"

The Senate GOP caucus already decided in a rare Saturday meeting they want a total of $150 million in tax cuts, mostly to continue the flat-tax reform effort started last session. Members also agreed they were willing to consider establishing a uniform statewide sales tax rate for food purchases.

Valentine said his caucus spent most of their time hearing pitches on bills, including one intended to protect an individual's right to religious expression from government interference, from Sen. Chris Buttars, R-West Jordan. The Senate president said the caucus did not take a position on that or any other bill discussed.


E-mail: bbjr@desnews.com; lisa@desnews.com

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