Utah lawmakers pass $190 million tax cut, food tax remains in place
UPDATE: – The Utah Senate passed the changes to S.B. 59 Thursday, sending the law to cut taxes to Utah Gov. Spencer Cox.
The Senate concurred with the House's substitutes to S.B. 59 Tax Amendments, sponsored by Sen. @danmccay. This bill includes a $163 million income tax cut, $16 million earned income tax credit and a $15 million social security tax cut. #utpol #utleg pic.twitter.com/nRY5ht9rjw
— Utah Senate (@utahsenate) February 10, 2022
The original story follows:
SALT LAKE CITY — A year after the Utah Legislature touted tax cuts, lawmakers voted to cut taxes again in 2022.
SB 59 and its approved amendments include a little less than $160 million cut from the current income tax rate and awaits approval from the Senate. This across-the-board cut means dropping the rate from 4.95% to 4.85%. The Deseret News reported this means an approximately $100 annual savings for a family that earns approximately $72,000; the higher an income, the greater the dollar savings for individuals or families.
Democrats pushed for an elimination of a food tax but failed to gain the Republican supermajority support needed.
Following the tax cut debate, we’ll just put this here:
We don’t have a surplus until all needs are met.
And all needs in Utah are not met.
— Better Utah (@betterutah) February 9, 2022
The cut also includes an earned income tax credit of $16 million and a Social Security tax reduction of $15. The earned income tax credit targets low and moderate income Utahns. The House Revenue and Taxation Committee voted Friday to endorse the new version of the bill with the ongoing funding for the nonrefundable state earned income tax credit and the expanded eligibility to the state’s Social Security tax credit.
SB 59 passed the House! This tax cut package will provide relief for all Utah taxpayers! These methodical changes come on the heels of tax cuts adopted by the Legislature just one year ago.
#utleg #utpol pic.twitter.com/jKYtHvC4SD
— Utah House Majority (@utahhousereps) February 9, 2022
A nonrefundable tax credit only gives taxpayers back what they have already paid in taxes. In contrast a refundable tax credit means taxpayers could receive a full amount of tax credit, regardless of how much they have paid.
Seriously though, we all laughed about how Utah Republicans gave everyone a $4 tax cut, but most of that $160 million went somewhere.
You can probably guess where.
— The Utah Way (@TheUtahWay) February 6, 2022
The bill absorbed two other bills focused on helping those with lower incomes in the state. The changed bill will now return to the Utah Senate that passed a previous version.
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