Checking In At The Legislature: December Update 2019

The legislature is scheduled for a Special Session Thursday, December 12th to vote on Tax Reform. The nearly final version is included in this newsletter. There is one more public meeting scheduled Monday, Dec 9th.  For the draft bill, click here.

This bill has a few changes from the November 20th proposal. Examples of the changes include:  

• Income tax cuts up to $160mil, plus $40 mil more paid for by tourists or visitors through food and fuel tax.  
• An incremental $125 per person food/fuel tax credit for families earning less than $75K is now included.
• A tax credit up to $2500 for ANY dependent living in your home regardless of age.
• Significant investment in transportation.
• Services taxed will be limited and include streaming subscriptions, Expedia, and Uber/Lyft. 
• Higher Ed can be paid for by any fund under this proposal, but the income tax earmark doesn’t have to include higher ed.
• There’s even more funding made available for K-12 education and we will be addressing guaranteed education funding during the general session so fiscal planning for education can finally take place. 

Why do we have more than $500mil above our revenue this year?

1. Legislators have been working hard to reduce excess spending. We are continuing to evaluate 20% of the state budget every year for the next 5 years for fiscal transparency and accountability.
2. We have the #1 economy in the nation…again! As the Wall Street Journal article from Friday, Dec 6th touts, Utah has the best economy in the nation. We are doing a lot of things right.  “The state’s politicians tend to do everything right to encourage business development and job creation...The state government in Salt Lake also has Utah’s fiscal house in order.” Overhauling our tax structure in a good economy is good policy.  https://www.google.com/amp/s/www.wsj.com/amp/articles/why-utah-has-become-americas-economic-star-11575676394

If we have such a good economy, why change it? Because our $500 mil surplus is $460 mil from income tax and $40 mil from sales tax. In good times this is beneficial. Downturns are problematic. This new tax structure would create a balance of 40% from sales tax and 60% from income tax which makes things much more stable for both a booming and a struggling economy. 

News articles worth reading:

• An op-ed from House Speaker Brad Wilson from Sunday, Dec 8th.
• News article summary of changes 

After 17 public meetings, nearly 60 hours of public input, countless legislative meetings with businesses, groups, individuals, and caucus discussion, this will get the focus of the entire special session on Dec 12 instead of shared time during the general session. It will mean that your 2020 tax deduction would take immediate effect Jan 1, 2020, if it passes. 

Check out my Facebook page Representative Melissa Garff Ballard for other work I’ve been doing on air quality, water leakage, schools, prisons, businesses, hydrogen, youth city councils, and other events around the state. 

Thank you,

Melissa

Water Legislation

K-20 Summit

Power Innovations And Energy Development

Receiving An Award

Touring The Salt Lake County Jail

North Salt Lake Youth City Council

Go Utes!

Education Bill