Utah Fair Tax Proposal

* 1. Governor Herbert and the Utah Legislature have decided to revisit fundamental tax reform in a special session, having seen the strong public opposition to their current proposal (HB 441). Please consider the following amended proposal:

1) Rather than cutting the sales tax rate by half or more, completely eliminate the state income tax instead (both personal and business). NOTE: Education funding would then just come out of the General Fund like everything else.

2) Broaden the sales tax base as proposed, by expanding it to include both goods and services, but avoid double taxation by only taxing sales at the retail level and only on new goods and services.

3) Pay each household an annual "tax prefund" to offset the cost of the sales tax on necessities. For example, if the poverty line is $20K, and the tax rate is 5%, then a household would receive $1,000 per year to offset the tax on the first $20K of household spending. The poverty line depends only on household size, not income.

Would this amended tax reform proposal be acceptable?