Removing the Food Tax "Ain't Gonna Happen"

None by KCPW

State Senate Republicans Draw the Line

(KCPW News) Republicans in the Utah Senate have decided not to support a further reduction in the sales tax on food. The Senate majority made the announcement on its weblog today under the heading "ain't gonna happen." Not a big surprise:

"We knew that the Senate would be our biggest opponent," says Low-income advocate Linda Hilton of the Coalition of Religious Communities. CORC collected thousands of public signatures last year in support of the food tax removal.

Lawmakers agreed to cut 2 percent from the tax beginning in January, and promised to revisit the remaining two and three quarters percent this session. Senate Republicans now say quote "anyone who is serious about cutting taxes will find a different place to cut them." They argue that removing the food tax entirely would make state tax revenues too volatile. Hilton suggests cutting some business tax incentives to make up the revenue - or perhaps taxing luxury services.

"Pedicures, manicures, legal services and accounting services are all things the poor don't need and the rich use quite a bit," says Hilton. "Why don't we tax those services. That will keep the base broad and give relief to the people who need it most."

Republicans in the Utah House of Representatives say they want to cut 300-million dollars in taxes next year, which is three times the Governor's income tax cut proposal. Senate Republicans say it's too early to decide how much to cut, but they've now made it clear it won't be the sales tax on food.

Email to a friendPosted in KCPW Newsroom and Legislative Coverage. Copyright 2009 KCPW