Beehive State News

The recent legislative session in Utah, which spanned from January 17 to March 3, resulted in significant victories for small businesses with the help of the National Federation of Independent Business (NFIB). Three key outcomes were achieved during this period.

Firstly, there was a reduction in the income tax rate from 4.85% to 4.65%, which is expected to save Utah residents a total of $400 million. Additionally, the earned income tax credit was increased from 15% to 20% of the federal tax credit.

Furthermore, NFIB played a crucial role in blocking efforts that aimed to limit access to capital for certain business types based on subjective criteria like social credit scores.

Highlighting the significance of these changes, it was noted that reducing personal income tax rates is particularly beneficial for small firms. This is because "eighty-five (85) percent of small employers are structured as pass-through entities (S corporations, limited liability companies, sole proprietorships or partnerships) that pay taxes on their business income at the individual rate." As such, most small businesses do not pay corporate taxes.