How’s He Going to Do It?

Last week, Huntsman said that now is not the time for a tax cut.  Now he says he is pushing for the elimination of the sales tax on food.

Okay let’s do the math here.  Gov. Huntsman wants to reduce the corporate taxes.  Okay, good idea, and in general I like the idea.  Gov. Huntsman wants to eliminate the sales tax on food.  Another good idea, and I complete agree.

But… (keep you eye on the “But”s).

But, Gov. Huntsman says that it is too soon for a tax cut.  Instead he wants to do a tax reshuffle (note that I didn’t use the word “reform” like the Governor likes to use).

So, if you eliminate the food sales tax, and you reduce the corporate tax, but you keep the tax burden the same as usual.  What does that mean.  Well, either an increase in property tax, an increase in non-food sales tax, or an increase in fees (the hidden tax).

Is Utah ready for 20% sales tax*?  Especially when we have a $112 million surplus?  Especially when we have learned that we can tighten our government belt a little an still get by?

I would rather the tax burden be more upon the purchase of items.  I don’t think that we should be punished for good employment, I don’t think we should be punished for purchasing food to feed our families, and I don’t think that we should be punished for ownership.  So, I completely agree that the tax revenues should be moved to a sales tax.

However, I think that a tax cut should be a priority so that when we move the burden to the sales tax, that it doesn’t need to be an outrageous sales tax.

* This number is not based on any actual figures.  But I personally think that it is an underestimation based on current revenues made from the tax on food, and corporate revenues.

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