Utah Gov. Spencer Cox signs $193M tax cut into law - Standard-Examiner

SALT LAKE CITY (AP) — Utah Gov. Spencer Cox signed a $193 million tax cut into law Friday in a move that parallels actions throughout the country in red and blue states flush with cash from higher-than-projected tax revenue and federal coronavirus relief dollars.

“All together, these tax cuts will return hard-earned money to Utah families and alleviate current inflationary pressures,” Cox said in a statement.

The proposal, which lowers Utah’s income tax from 4.95% to 4.85%, passed through the state House on Wednesday and the state Senate on Thursday.

In addition to slashing the income tax, the cut includes an earned income tax credit that will allow workers who make less than $57,414 to receive refunds for part of their state taxes. The threshold is the same as the federal Earned Income Tax Credit qualifying rule.

The tax cut also will allow social security beneficiaries to be refunded for the taxes they pay on their benefits.

More than 1 million taxpayers would save an average of $129 in income taxes, while about 81,000 families would receive refunds through the state earned income tax credit.

Passage of the cuts comes weeks after Utah Senate President Stuart Adams declared 2022 the “year of the tax cut” for the second year in a row. Lawmakers’ choice to cut taxes came amid fresh revenue demands from state agencies adjusting to the Utah’s fast growing population.

Though some lawmakers initially preferred a plan that would have cut sales taxes on groceries, the package passed this week won bipartisan support for providing tax relief across income brackets.

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source: https://www.standard.net/news/government/2022/feb/11/utah-gov-spencer-cox-signs-193m-tax-cut-into-law/

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