When is the ‘worst case’ for a tax hike?
The tax hike bill passed by the House of Representatives Tuesday was intended to address an increase in payroll taxes for the state of Utah and other states.
The tax bill, which also includes cuts in health care and education funding, was the product of negotiations between the House and the Senate that have been stalled since December.
The Senate was expected to take up the bill Tuesday, but the House was scheduled to vote on it in the early afternoon.
The House bill would raise the state’s payroll taxes by an additional 3.3 percent on March 1, 2018 and by 3.6 percent on July 1, 2019.
The tax hikes would take effect in 2021 and 2021-2022.
It was also expected that the House would include an additional 2 percent tax increase for those who earn more than $1 million.
The bill would also hike the state income tax by an extra 3.9 percent on April 1, 2021 and by 4.1 percent on June 1, 2022.
The state would be able to eliminate all tax increases that have not been approved by voters.
But the tax hikes, which are expected to add to the budget deficit and cost the state more than two million jobs, are likely to be controversial.
Some of the tax increases would be a direct result of the Supreme Court’s ruling in favor of President Donald Trump’s travel ban in January.
The decision left in place a court-imposed ban that had been struck down by the lower courts, but it left in effect a temporary ban on the entry of people from seven Muslim-majority countries.
Trump has since appealed the decision and the justices have not yet ruled.
The court could take up Trump’s appeal in the coming weeks.
The Supreme Court could also decide to strike down a provision in the bill that would allow employers to deduct their payroll taxes from their taxes.
The bills’ sponsors say they’re trying to balance the budget.
Utah has already reported a $1.2 billion budget surplus in 2019.