The Salt Lake Chamber, Utah’s longest-standing statewide business association, applauds the proposed extension of the Bush Tax Cuts and other fiscal policies that will accelerate the ongoing recovery in Utah and across the nation.
The Chamber urges Utah's federal delegation to support the breakthrough agreement between congressional Republicans and the White House, which will boost Utah consumer spending by more than $1.2 billion and add needed certainty, continued momentum and ongoing strength to the Utah economy.
“News of this agreement is like an extra present in our Christmas stocking,” said Lane Beattie, president and CEO of the Salt Lake Chamber. “Now business leaders can not only make decisions with more certainty and greater returns, but Utah workers and consumers will have significantly more money to spend. Consumer spending is a key ingredient to additional hiring in Utah and the nation.”
As part of the compromise, all the Bush Tax cuts extend for two additional years, allowing for greater consumer confidence and spending, while encouraging investment. Take-home pay also increases for employees as a result of a two percent cut in the payroll tax for 2011—employees will now pay 4.2 percent to Social Security rather than 6.2 percent. In Utah, this equates to over $1 billion in new take home pay for Utah consumers. Additional money will enter the Utah economy because of the 13-month extension in unemployment benefits.
“The Utah economy is currently growing at nearly three-times the national average,” said Salt Lake Chamber Chief Economist Natalie Gochnour, pointing to Utah’s year-over job growth of 1.4 percent compared to 0.5 percent nationwide. “The private sector is leading the way with nine of Utah’s eleven industries now growing. The deal to extend the current tax rate improves the U.S. outlook and will strengthen Utah’s already improving economy.”