Monday, January 12, 2009

Huntsman backs off on services tax


Gov. Jon Huntsman says he won't advance a plan this legislative session to tack sales taxes onto professional services like legal and accounting advice...... Huntsman says he'll likely revisit the plan during the next legislative session, after he's seen a final Tax Review Commission report on taxing services.

Two notes:

a) the tax hike was going to be coupled with reducing the sales tax on food to Zero. Now, the latter will be coupled with a cigarette tax hike.

b) when Huntsman revisits the extra taxes on professional services, it will come with a tax cut of some nature.

Why it matters: in the 2012 Presidential primary, you can bank on one of Huntsman's opponents running the "Huntsman Tax and Spend ad", which will warn:

"Governor Huntsman claims to be a Republican. But in 2009, he delivered the highest tax in our nation's history on Utah. One year later, he was back at it again, raising taxes on key professional groups that need all the help they can get. Governor Jon Huntsman. We can't afford him. Not then; not now."

I'm guessing the ad will end with: "I'm Mitt Romney, and I approve this message".