SALT LAKE CITY (ABC4) — The Senate and House Majority Caucuses have proposed an additional $400 million in tax relief for Utahns after the Legislature has reportedly reduced taxes by nearly $300 million for the past two years.
H.B. 54, sponsored by Rep. Steve Eliason (R-Sandy), seeks to reduce the state income tax rate from 4.85% to 4.65%.
“2023 will be the year of the tax cut again, again, again,” said President J. Stuart Adams. “For the third year in a row, we will return money to the hard-working Utahns who earned it. We will continue to promote long-term investments that help families, individuals and businesses succeed.
Additionally, the bill pushes to expand social security tax credit eligibility to people earning up to $75,000 per year. If passed into law, H.B. 54 will also allow a double dependent exemption for children in the year of their birth. The federal credit of earned income tax credit will be increased from 15% to 20%.
Here are the tax cuts different households should expect if Utah’s income tax is lowered to 4.65%:
- Low-income households = about 22% tax cut
- Middle-income households = about 6% tax cut
- High-income households = about 4% tax cut
“We will also fund education at record levels and address pressing issues facing our state, including Utah’s water crisis,” Adams said. “The foresight of years past has enabled our economy to be the envy of the nation, and we are committed to having the same foresight that has and will continue to produce a strong and stable economy.”
To give an example, legislators say a family of four making $80,000 a year will see a $208 reduction in tax liability if H.B. 54 becomes law.
“We firmly believe money is best used when left in the pockets of our citizens and we’ve clearly demonstrated that the past few years,” said Speaker Brad Wilson. “The Legislature is constantly looking at ways to reduce taxes while being fiscally responsible and good stewards of our resources. The best way we can ensure Utahns can continue calling Utah home is by passing family and business-friendly policies, including reducing taxes.”
The bill is scheduled to be heard in the House Committee on Tuesday, Feb. 21, at 8 a.m.