Utah Foundation Report Ranks Utah Tax & Fee Burden 12th Highest

None by Jeff Robinson

(KCPW News) Utahns have the 12th highest burden in taxes and mandatory fees according to a new report from the Utah Foundation, which studied both taxes and spending data from 2006. Stephen Kroes, president of the foundation, notes that we pay the fifth highest amount when it comes to mandatory fees alone.

"We rely a lot on fees, but most governments in this nation have increased their fees, because taxes are so unpopular, and so more and more services are being paid for by fees," said Kroes. "Part of that makes sense because a lot of people want to say, if I don't use that service, I don't want to have to pay for it."

When it comes to all taxes combined, including income, sales, and property, the state ranks 15th. Public education accounts for the great majority of spending, with Utahns paying 3.5 percent of their income toward that cause. Higher education accounts for 1.5 percent.

Kroes gives the Utah legislature credit for socking away money during economic booms, allowing them to use it later for one-time costs during slowdowns.

"What our legislature tries to do is when those economic booms come and the revenue is growing very fast, they try to be cautious, and say we know this rate of increase won't continue forever, and if we spent all of that boom surplus on operating commitments, salaries and things that require ongoing funding, we'll end up having a deficit in the future when the economy slows down," said Kroes.

Kroes predicts that transportation funding could be a problem down the line as gas prices go up, because the gas tax is a flat rate and consumers will buy less of it. Take a look at the foundation's report online, and listen to a conversation with Kroes from KCPW's Midday Metro.

Email to a friendPosted in KCPW Newsroom. Copyright 2009 KCPW