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Cooler heads have prevailed. As the Legislature entered the home stretch in the 2006 session, it looked as though lawmakers were going to leave a key piece of business undone: the state budget. The House of Representatives and the Senate have been at loggerheads on the question of eliminating Utah's sales tax on food.
The House voted to lift the tax many deem regressive and anti-family, while senators preferred to keep the tax in place and allow people to claim an income tax credit to offset the food tax. Gov. Huntsman sided with the House. It promised to be one of those showdowns that brings government to a grinding halt until somebody gives in. But on Friday, legislators reached a compromise. They agreed to reduce the sales tax on food from 4.75 percent to 2.75 percent, and cut income taxes with $20 million in business tax breaks, creating a total of $160 million in tax cuts. It was a statesmanlike solution to a politically volatile situation. Neither side got exactly what it wanted, but the two houses agreed to move the budget process forward. There was more riding on the debate than legislators' egos. Important projects were in danger of delay or abandonment if the Legislature could not work out a budget by Wednesday. One of the casualties would have been Utah Valley State College's Digital Learning Center. The expanded library was the No. 2 item on the state's capital expense budget, behind the Capitol building restoration. While it would have been nice to have eliminated the food tax, it was not worth putting UVSC's library plans in jeopardy. The college needs an upgraded facility to keep pace with its rapidly growing student body. Without an adequate library for students and the surrounding community, UVSC would find it all the harder to achieve university status. We wouldn't want to see the Legislature put off repairs on the Capitol or improvements to the state's transportation system just because representatives and senators are stubborn. While a budget squabble may delay a project, it does not stop inflation from pushing up costs. Delays always mean projects will cost more. The compromise does provide a measure of relief at the grocery store for Utah families. It also buys the Legislature some time to discuss the issue further. And it should not put off the question until next year. There never seems to be enough time during the session to work such complex matters out. This should not be the end of discussion, either on the question of taxing food or on larger questions of tax reform.
This story appeared in The Daily Herald on page A5.
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