Just over half of all Utah voters believe their state taxes are too high, a new Y2 Analytics survey shows.
In addition, the poll results, obtained by UtahPolicy.com, find that among various tax-cut options, the one seen as most beneficial by voters for their own personal needs would be to cut the state income tax.
Likewise, most think cutting the state income tax would be most beneficial to the state’s economy, most beneficial to the wealthy among us, and cutting the income tax would be most beneficial to Utah businesses.
There is more disagreement when asked which tax cut would most benefit low-income Utahns. On that question, just over half said cutting the income tax would be best, while 46 percent said increasing the child dependent exemption would help low-income Utahns more — a rather savvy answer considering all the complexities involved in tax relief and the average Utah family.
Y2 found that 53 percent of voters believe their state taxes are too high, 38 percent said their taxes are “about right,” while 3 percent said they are too low, and 6 percent “didn’t know.”
The Senate and House GOP caucuses met Tuesday in closed gatherings to discuss how to set the 2020-2021 $20 billion budget and whether or not to give tax cuts this election year.
All kinds of political and fiscal implications are weighing on the majority Republicans, who with two-thirds’ majorities in both houses will be making the major budget/tax cut decisions — with input by GOP Gov. Gary Herbert.
The Y2 new polling, which was shared by the GOP lawmakers in their closed caucuses, UtahPolicy.com is told, shows Utahns want tax cuts now.
The state has ongoing and one-time tax surpluses of $921 million, huge by any historical standards.
However, still unknown is how hard the Coronavirus will hit Utah’s citizens and economy — with some major fiscal impacts possible in the 2020 tax revenues.
And while most disease prevention specialists say the virus likely won’t hit Utah’s Capitol Hill badly until after the March 12 adjournment, if at all, there is still the possibility that lawmakers may have to end their session early, and come back later in the year to finish their budget work after the virus dwindles in the summer.
In any case, the new Y2 poll results show that most Utahns believe an income tax reduction is best for their family situation, best for the state economy, and best for business.
The numbers:
— 83 percent said an income tax would benefit them most personally, 13 percent said increasing the child dependent exemption is best for them, while 4 percent said a military retirement tax credit is best for their situation.
— 79 percent said an income tax cut is best for the state’s economy, 16 percent said the child exemption increase is best for the economy; while 5 percent said the military tax credit.
— 87 percent view the income tax cut as best for high income Utahns. Utah has a flat-rate income tax rate of 4.95 percent — so the more money you make, the more you pay in taxes, and so the more you would see in an income tax cut.
Ten percent said an increase in the child dependent exemption would help the wealthy the most.
While only 3 percent said the military retirement tax credit would help high income folks most.
— 87 percent said an income tax cut would help Utah businesses the most, 9 percent said the child exemption increase would be best for businesses, while only 4 percent said the military tax credit would be best for businesses.
Finally, asked which tax cut/credit would help low income families the most, 52 percent said just a straight income tax rate cut, 46 percent said the child dependent exemption extension, while 3 percent said the military retirement credit.
So, if the majority Republicans and Herbert want to help all taxpayers, with low-income folks specifically targeted for some tax relief, it looks like Utahns prefer a combination of straight income tax rate cut along with an increase in the child dependent exemption is the way to go.
Y2 polled 1,049 voters from Feb. 26 to March 2, with a margin of error of plus or minus 3.03 percent.
