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Eliminating grocery sales tax in Utah likely wouldn’t help low-income families, expert says

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Eliminating grocery sales tax in Utah likely wouldn’t help low-income families, expert says


After a proposal to remove the meals gross sales tax failed this 12 months in the course of the Utah Legislature’s common session, regardless of advocates’ pleas, a nationwide tax skilled says ending the meals gross sales tax seemingly would not assist low earnings residents. (Kristin Murphy, Deseret Information)

Estimated learn time: 4-5 minutes

SALT LAKE CITY — After a proposal this 12 months on the Utah Legislature to remove the grocery gross sales tax failed in the course of the session regardless of advocates’ pleas, a nationwide tax skilled says ending the tax seemingly would not assist low earnings residents.

Utah is one among simply 13 states that also contains groceries “not less than partially” of their gross sales tax bases, famous Jared Walczak, vp of state tasks with the Tax Basis in Washington, D.C.

“These 13 states are proper. The problem with this, after all, is it is simply not a enjoyable factor to defend,” Walczak stated.

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Meals taxes arose as a bigger subject over the previous 12 months as a consequence of inflation as everybody’s grocery payments have gone “means up,” he added, talking in the course of the Utah Taxpayers Basis 2022 Taxes Now Convention in Salt Lake Metropolis.

Utah’s grocery tax

Though Gov. Spencer Cox proposed a $160 million grocery tax credit score in his funds advice this 12 months, lawmakers opted as an alternative for a $193 million common tax minimize, together with $163 million for an across-the-board earnings tax fee minimize for all Utahns, dropping Utah’s earnings tax fee from 4.95% to 4.85%, plus a $16 million nonrefundable earned earnings tax credit score and a $15 million growth for the state’s Social Safety tax credit score.

Some states, like Utah, tax on the “abnormal” fee of three%, some tax at decreased charges, and a few embrace groceries of their tax base however provide credit to lower-income residents, based on Walczak.

Regardless of the “comprehensible” need to offer reduction by taking groceries out of the gross sales tax base, Walczak stated, a examine performed by the Tax Basis discovered that does not “assist the lowest-income people.”

These within the lowest earnings classes eat most of their earnings, he famous. “And they’ll be consuming on quite a lot of issues, however one very huge merchandise for lots of people can be groceries.”

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Based mostly on the examine, the bottom-third earnings bracket nationally saves simply $2.50 per particular person on common annually with the grocery gross sales tax eradicated or decreased in states which have performed so.

That is partially as a result of within the Supplemental Diet Help Program (SNAP) and Girls, Infants and Kids (WIC) applications — which many low earnings households use to buy groceries — gross sales taxes do not apply.

Ready meals, equivalent to frozen dinners, additionally aren’t thought of groceries in any state. Which means in states which have eradicated the grocery tax fee, ready meals nonetheless get taxed. Walczak stated that for lower-income households — for whom time has a big worth — the slight extra value to purchase meals that is already ready nonetheless “weighs higher” than groceries that do not get taxed.

States can present reduction by implementing a decrease across-the-board gross sales tax fee, or the next fee with groceries out of the tax base, Walczak famous.

“We discovered that nationally, it truly helped the bottom earnings households … to have groceries within the base,” he stated.

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The examine discovered that the lowest-income households expertise 9% extra gross sales tax legal responsibility with a grocery tax exemption in comparison with a commensurate common tax fee discount.

Grocery gross sales tax elimination has benefited these within the center earnings vary essentially the most, based on Walczak. These individuals are extra seemingly to purchase extra high-end groceries and see extra of the results of not getting taxed on that meals, he stated.

Lawmakers stay involved about inflation

Throughout Wednesday’s convention, the governor, Senate President Stuart Adams, R-Layton, Home Speaker Brad Wilson, R-Kaysville, and others expressed concern about inflation and a possible recession.

“One of many levers that we are able to pull … to scale back the tax burden on each Utah household to allow them to hold extra of their cash, select to spend it how they want … to assist cope with a few of this inflation,” Wilson stated.

Though the Legislature balanced its “largest funds in state historical past” this 12 months, he stated, the state’s dependence on gross sales tax to fund all the things apart from training creates a problem.

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“It is actually laborious to take 33% of the state’s income and pay for all needed and important authorities capabilities, together with transportation, these sorts of issues,” he stated, calling the problem “a big roadblock for Utah within the close to future and I feel undoubtedly within the long-term,” he stated.

A lifelong Utahn, Ashley Imlay covers state politics and breaking information for KSL.com.

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Meet Derek Brown, Utah's newly elected attorney general

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Meet Derek Brown, Utah's newly elected attorney general


SALT LAKE CITY — After taking the official oath of office on Wednesday, Derek Brown has become Utah’s newest attorney general.

Now that he’s in office, what’s next? He joined Inside Sources to talk more about his priorities for office.

Below is a partial transcript of this interview as well as the full podcast.


KSL NewsRadio modified this interview for brevity and clarity.

HOST TAYLOR MORGAN: What are your priorities as you take office?

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GUEST DEREK BROWN: I think the key to that is transparency. When I served in the House of Representatives, I learned that people appreciate when you are open and you make it clear to them what you’re doing. And as people understand what we’re doing in the Attorney General’s Office, we’ll see successes, there will be an increase in trust … That’s just the natural outgrowth of transparency, and I’m going to be doing a number of things proactively so that we build that feeling of not just transparency but [also] trust.

MORGAN: My understanding is that you and your family have put your assets into a blind trust … and you have officially stepped down from any non-profit boards. Is that correct?

BROWN: That’s correct… I just feel like it makes sense, in light of this position, to just eliminate any potential conflicts of interest in advance. I’m a little sad to do it because these are great people. I love being there, making a difference. But at the same time, I feel like we’ve got those organizations onto a good footing.

People make Utah great, not government, says Gov. Cox at inauguration

MORGAN: [How] would you explain your role to listeners? What does the Utah attorney general do primarily?

BROWN: We have 280 attorneys, and they provide legal counsel for all the boards, commissions, and agencies of the state. Everything from the University of Utah to UDOT to DMV… So there’s literally 280 attorneys that do every conceivable area of the law… It is the largest law firm in the state of Utah, so my job is to make sure it’s also the best, most efficient, most well-funded, and well-respected law firm in the state of Utah.

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Listen to the podcast below for the entire interview.

 

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Have a story idea or tip? Send it to the KSL NewsRadio team here.



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RECAP: Panthers 4, Utah Hockey Club 1 | Florida Panthers

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RECAP: Panthers 4, Utah Hockey Club 1 | Florida Panthers


“Sometimes they go in, and sometimes not,” Boqvist said. “I feel like our line played pretty well. We’re working hard and winning a lot of pucks down low, trying to play with speed. When we have time and space to do stuff, we will.”

From there, penalties proved costly for the Panthers.

After coming up short on their first two trips to the power play in the period, the third time was the charm for Utah as Logan Cooley lit the lamp to cut Florida’s lead to 2-1 at 13:41.

Stomping out any would-be comeback for Utah, Boqvist regained the two-goal cushion for the Panthers when he cashed in on the empty net from deep in his own zone to make it 3-1 at 17:59.

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At 19:38, Eetu Luostarinen tacked on another empty-netter to make it 4-1.

Finishing strong, the Panthers led 12-3 in scoring chances at 5-on-5 in the third period.

“I liked the bench,” Maurice said. “I liked the mood of it. They’re pulling for each other, supporting each other, battling and grinding. Understanding we come into this building, these teams come wired for us and are ready. Get out of the first period even. We’re good on the road like that. Then I thought we built. Halfway through the first period we got our game going.”

THEY SAID IT

“He’s earned it. We’ve used him at left and right wing, and he’s played center for us. He’s played with different people. He’s a really competitive guy.” – Paul Maurice on Jesper Boqvist

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“Speed, skill, hard work. He works really hard, but he also has that ability to take over games with his speed and skill. He has a great shot. We’ve seen that all year in practices and games. He’s fun to watch. He’s one of those players where it’s just a matter of time until he breaks out, and he’s breaking out right now. It’s been fun to watch.” – Aleksander Barkov on Jesper Boqvist

“He’s so good, right? It’s so fun to watch. Playing against him for a couple years, it’s not easy.” – Jesper Boqvist on Sergei Bobrovsky

CATS STATS

– Carter Verhaeghe extended his point streak to three games.

– The Panthers are 7-for-8 on the penalty kill over their last two games.

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– The Panthers have four players with at least 30 points this season.

– Sergei Bobrovsky is the third goaltender to earn a win against 33 NHL franchises.

– Sam Bennett won a team-high nine faceoffs.

– Matthew Tkachuk and Jesper Boqvist each recorded five hits.

– The Panthers held Utah to just eight shot attempts at 5-on-5 in the third period.

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WHAT’S NEXT?

Grab your popcorn.

Meeting for the third time this season, the Panthers will try to improve to 3-0-0 against the Boston Bruins when the two rivals clash at Amerant Bank Arena on Saturday at 1 p.m. ET.

For tickets, click HERE.

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Utah Gov. Cox headed to Mar-a-Lago to visit President-elect Trump. Here’s what he says they’ll talk about.

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Utah Gov. Cox headed to Mar-a-Lago to visit President-elect Trump. Here’s what he says they’ll talk about.


Gov. Spencer Cox plans to discuss unlocking energy potential on public lands among other issues as he heads to Mar-a-Lago on Thursday along with Republican governors from across the country to pitch their priorities to President-elect Donald Trump.

“I plan to talk to him, if I get the opportunity, about energy and about public lands and how we can unleash the energy potential, especially in the West,” Cox told reporters Wednesday after his ceremonial inauguration. “We need significant reform in the energy space, especially when it comes to nuclear, being able to permit nuclear.”

One of Cox’s main goals for his second term is doubling energy production within the next decade, and his vision for achieving that includes bringing nuclear power to the Beehive State for the first time.

Utah’s history with all things nuclear has been fraught, since an untold number of residents were sickened by exposure to fallout from atomic bomb tests in neighboring Nevada. Utah was later targeted as a site for a high-level nuclear waste repository — a plan that ultimately was abandoned.

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Cox said he expects discussions to arise on housing affordability, border security and inflation — topics that are concerns for all of the GOP governors.

Utah’s chief executive said he also anticipates raising the status of Bears Ears and Grand Staircase-Escalante National monuments — which were created by Presidents Barack Obama and Bill Clinton, respectively, slashed to a fraction of their size during the first Trump presidency, and then restored under President Joe Biden.

Utah has sued the federal government over those monuments, and Cox said he would like to see the lawsuit progress.

“I don’t love the pingpong game that’s going back and forth,” he said. “That’s not good for anybody and it’s not helpful. And so, ultimately, we need the Supreme Court to decide some of those major issues.”

Cox has had an evolving relationship with the incoming president. He did not vote for Trump in 2016 or 2020, but, after an assassination attempt on candidate Trump in July 2024, the Utah governor wrote the former president a letter saying he believed he could unite the country.

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He later appeared alongside Trump at Arlington National Cemetery, spurring controversy because political campaigning is not allowed in the hallowed space, and Cox’s campaign sent out a fundraising email featuring an image from the meeting.

(@GovCox via X) Utah Gov. Spencer Cox, far right, poses for a photograph with the family of Marine Corps Staff Sgt. Darin Taylor Hoover and Republican candidate for president Donald Trump at Arlington National Cemetery in Arlington, Va., Monday, Aug. 26, 2024. Trump and Cox joined the Hoover family to commemorate the passing of Hoover, who was killed three years ago during the U.S. withdrawal from Afghanistan.

Cox later apologized, calling it a mistake.

Since Trump won the election in November, the governor has expressed an eagerness to work with the incoming administration, particularly when it comes to deporting criminal migrants.

He said he has been “working very closely” with Utah legislators who presented a suite of bills aimed at “making sure that we’re getting rid of the offenders who are here and trying to fix legal immigration,” a move that Cox said would require a federal solution.

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