Flat Income Taxes: Less Progressive But More Stable

Posted:
Categories:
Download this Brief

Responsiveness in state revenue collections to changes in revenue sources has been increasingly important in recent years. Economic fluctuations have the potential to disrupt state revenue collections and the resulting funding for needed services. Beginning with former Governor Olene Walker’s tax reform proposal, attention has been directed to an overhaul of Utah’s state personal income tax system. All revenue generated from Utah personal income tax collections is constitutionally designated for education; to add stability to the educational tax structure, a new proposal has been presented that would simplify the state personal income tax by lowering the tax rate and broadening the base by eliminating deductions. The proposal would also decrease taxes for individuals living below the poverty line.

 

Comments are closed.