(KCPW News) Calling it a tax increase, Republicans in the Utah House of Representatives voted yesterday to oppose the portion of Governor Herbert’s proposed budget calling for self-employed business owners to make quarterly tax payments. Representative Greg Hughes says requiring changes to bookkeeping methods would mean a $10 million hit to small businesses.
“We think that the cost of complying with the interruption in cash-flow for small businesses will not help this economy, or help our businesses pull out of this recession. So we think its particularly bad timing,” says Hughes.
Hughes says legislative fiscal analysts disagree with the estimation that requiring quarterly tax payments would create $130 million in one-time money. And they worry about using one-time funds to pay for an on-going expense.
“The budget that the Governor proposes would still use $200 million of your savings for your on-going expenses and we think that’s a dangerous course,” says Hughes.
Hughes says the legislature will likely pass an initial budget that includes a 7% reduction and does not include spending one-time money on on-going budget items, and budget negotiations will begin at that point.