‘Extremely shocked’: Utah families hit hard, paying
more under new tax law
KSL - Feb 12th, 2019
Tax season is turning into a
tax nightmare for many Utah families, especially those with more than two
children, as they discover a significant jump in state income taxes.
“I’m paying an extra $1,000
on taxes when I was told my taxes would go down,” said St. George school
teacher Scott Hicks.
The jump in state taxes is a
result of the Tax Cuts and Jobs Act, the most significant tax code change in
three decades that promised tax cuts for the average family. Turns out, the
very things that make Utah unique are also a recipe for tax-time sticker shock
under the new federal overhaul.
History of Utah’s sales (Bondage) tax
(Note:
Utah became a 14th amendment state our land was taxed)
As
the depression hit Utah,
property tax revenue, which had accounted for 90 percent of the state’s entire
revenue at
this time, began to dip due to Great
Depression-related delinquencies, the Office of Legislative Research and General Counsel wrote in
a 2011 report…
As
a result of this revenue dip, the state started an income tax
in 1931 and
a sales tax in 1933 to diversify its revenue
situation, the 2011 report pointed out... By
the 1970s, sales tax overtook property tax as the state’s largest revenue
(Great Depression hit Utah = YOU PAY MORE TAXES !!!)
Utah which will TAX Everything…
Utah state sales tax rate
drops to 3.1% in tax reform proposal
KSL - Real estate, health care and
tuition are the only services left largely untouched by the tax reform
plan, which will tax everything from haircuts to legal and other professional services.
The legislation is intended
to bolster a sales tax base that makes up the bulk of the state's general fund
yet is shrinking because consumer spending has shifted to services that are not taxed. The state's other major revenue
source, income taxes, can only be used for education, so lawmakers fear growth
in other areas of the budget will stall without action despite a $1.1 billion surplus.
