Raise taxes on the rich? Utah lawmakers say no

SALT LAKE CITY — A long-shot Democratic proposal to raise taxes on those earning $1 million or more was rejected by a Utah Senate committee this week.

SB244, sponsored by Sen. Nate Blouin, D-Millcreek, failed to advance out of the Senate Revenue and Taxation Committee in a 1-5 vote Wednesday.

Blouin’s bill would have increased the state income tax rate from 4.55 to 5.55% for the highest earners in Utah. Blouin told the committee this would “raise revenues from folks who are doing quite well and be able to use them for critical needs.”

The first-term senator estimated the proposal would impact about 20,000 Utahns and raise $150 million to create a refundable earned income tax credit for low-income workers and help fund education.

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The Utah Taxpayers Association was among those who opposed the bill.

“We do worry about increasing any type of income taxes,” said Billy Hesterman, the organization’s president. “As we want to incentivize people being more productive and creating more jobs and more wealth for the state, we worry that any type of increase will serve the opposite.”

But Elyse Hiti, an educator, called Blouin’s plan “common sense” and said it would make a difference for school funding as the state tightens its financial belt.

“We should not be relying on the wealthiest’s generosity,” Hiti said. “We should be relying on them paying their fair share of taxes.”

The Senate committee spent very little time actually discussing Blouin’s proposal. Only Sen. Luz Escamilla, D-Salt Lake City, spoke about it and voted to support it. None of the Republicans on the committee made any comment on the bill during debate before voting against it.

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A 2022 Gallup survey found 52% of Americans supported raising taxes on the rich, with 47% opposing it.

This issue often comes up in national politics. During the 2024 presidential race, former Vice President Kamala Harris, the Democratic candidate, proposed increasing the capital gains tax on higher-earning households, CNBC reported.

Former President Biden promised to raise taxes on the wealthy during his 2024 State of the Union address, according to Reuters.

President Trump, meanwhile, is pushing for $4.5 trillion in tax cuts, at least $1.5 trillion in spending cuts, and raising the nation’s debt limit by $4 trillion to pay its bills, the Associated Press said.

Read the original story at KSLTV.com.

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