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UTAH: TWO INCOME TAXES FOR THE PRICE OF ONE

September 26, 2006

Utah has implemented an odd new system. The state will impose a "flat tax" at a 5.35% rate. The odd part? They will keep their old multi-rate tax. As the "Talking Taxes" blog (I think an arm of the left-ish Citizens for Tax Justice) aptly puts it:

Bottom line: last week Utah had one income tax. This week it has two.

The group "Iowans for Discounted Taxes" is pushing for a similar system in Iowa. While a flat tax is fine, pasting it on top of the existing system is stupid. You keep all of the complexity of the old system and make everybody compute their taxes twice.

The right-ish Tax Policy Blog also has coverage.

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