Utah Legislature Set to Cut Taxes for 5th Consecutive Year in 2025

Utah – As Utah’s lawmakers prepare for the upcoming legislative session, Governor Spencer Cox has proposed significant changes to the state’s tax structure, including a tax cut on Social Security benefits. While the governor supports the full repeal of Utah’s tax on these benefits, legislative leaders are still determining how best to approach tax cuts for seniors and other taxpayers.

Governor Cox’s Proposal

In his budget recommendation, Governor Cox suggested eliminating the state’s tax on Social Security benefits, a move estimated to cost the state around $143.8 million annually. Under current law, Utah residents who earn less than $75,000 and receive Social Security benefits can qualify for a tax credit. The governor’s proposal, however, aims to extend this benefit to approximately 150,000 additional taxpayers, reducing their income taxes by an average of $950 per year.

Cox sees this as a targeted tax break for seniors, noting the importance of providing relief for the state’s older population. Additionally, the governor proposed allocating $2.1 million to expand the state’s child tax credit, benefiting families with up to four children.

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Legislative Leaders’ Stance

However, not all of Utah’s Republican legislative leaders are fully aligned with the governor’s proposal. House Speaker Mike Schultz and Senate President Stuart Adams have expressed support for reducing the tax on Social Security benefits, but they have indicated that other tax cuts will also be part of the conversation.

“We want to provide tax cuts to every citizen, including those on Social Security,” said Schultz. “While we’ll definitely address the issue of Social Security, whether it matches the governor’s proposal remains to be seen.”

The Possibility of Additional Income Tax Cuts

In addition to considering changes to the Social Security tax, Adams has suggested that lawmakers may propose a broader income tax rate reduction for all residents. While this could affect the overall budget, Adams has emphasized that both the reduction in Social Security tax and broader tax cuts are on the table.

“We have to balance the budget, but I support doing both—lowering the income tax rate and expanding the Social Security tax credit,” Adams said. He also mentioned the possibility of raising the income cap for the Social Security tax credit, potentially extending eligibility to those earning up to $100,000.

As lawmakers begin reviewing the state’s finances and weighing the impact of various proposals, it’s clear that tax reform will be a key issue in the 2025 session, though the exact path forward remains uncertain.

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keelee-mccain

Keelee McCain is a junior at Weber High School. This is her second year on staff, this year as Assistant to the Chief. She does have a life (probably) but she can't think of anything to write in here, so she's probably just going to ramble now. She has an orange cat who she likes better than any human. If you see her being quiet or not sitting on top of a desk, there is something very wrong. In her free time she enjoys harassing her favorite teachers and sleeping. Her life plans include making it through high school and leaving. Happy lifeing.

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