The Utah Legislature will likely spend much time over the next couple of months talking about K-12 and post-secondary education, energy, immigration, taxes and elections. But what should they consider if they want to be responsive to what matters most to Utahns? The answer: cost of living and political dysfunction.
Cost of living: Housing
With respect to the cost of living, voters were concerned about housing costs and all other household expenses following periods of high inflation from 2021 through 2023. To be responsive to voters, two key issues for the Legislature are housing and taxes.
Utah Foundation research found that, compared to older generations, millennials saw the largest decrease in housing affordability during peak household formation years. Accordingly, housing affordability is at the top of many younger Utahns’ minds. Many of the rest of us are worried about affordability too, sometimes for ourselves, but more often for younger people, lower-income Utahns and future generations.
In 2024, the Utah Legislature moved toward speeding up residential construction — including homes for first-time homebuyers. They may take additional steps in 2025.
Cost of living: Taxes
Non-housing costs are perhaps even more challenging to address than housing costs. Legislators have the most direct control by lowering or removing taxes. Three taxes comprise the “three-legged stool” of Utah’s revenues: income, property and sales taxes.
To most directly affect costs, politicians could remove the sales tax on food. In fact, groceries were voters’ biggest household budget concern in 2024. The food tax question was part of a failed attempt at a constitutional amendment during the 2024 election. However, that tax is unlikely to be addressed in 2025.
The Utah Foundation has studied all taxes and fees for the past 80 years. A key finding from its 2024 research was that Utahns’ personal income rose the fastest of any state from 2016 to 2021. Utahns’ tax burden also rose over the same time, meaning Utah’s tax collections increased even faster than the residents’ record personal income growth.
In the face of those increases, expect to see income tax cuts during this year’s general session. The governor is calling for a tax cut on Social Security benefits — which is effectively income for older Utahns. However, some in legislative leadership would like to see cuts for all Utahns — with a cut to income taxes across the board.
While the overall tax burden is up, one key tax continues to decrease. Another key 2024 finding was that Utahns’ property tax burden in 2021 was $22.76 per $1,000 of personal income — the lowest property tax burden in the past 100 years.
Property taxes are mainly the purview of local governments. So, we might not see the Utah Legislature get into this issue in a way that affects most of us. However, the Legislature controls certain aspects of Utah’s property tax structure and runs many bills, so you never know.
Political dysfunction: Politicians not listening to voters
Voters in 2024 were concerned about political dysfunction. This is because voters believe politicians don’t listen to them and because many voters are tired of partisan politics.
In 2024, the Utah Foundation found that over 70% of voters agreed that “Utah’s politicians are too beholden to business, religious, or other special interests and ignore the will of the people.”
If voters feel that politicians do not align with their views, the elected officials must be responsive to other influences. While this is more of an issue for Democrats and unaffiliated voters, many Republicans also feel that way.
Given that the legislature is set to discuss education, immigration, taxes, elections and other hot-button issues, many voters will likely feel ignored. However, that is perhaps the nature of politics. Moreover, Utah legislators may try to limit voters directly by implementing more difficult voter ballot initiative requirements or expanding legislators’ ability to overrule voter ballot initiatives that pass in response to the Supreme Court nullifying Amendment D in 2024.
Political dysfunction: Partisan politics
Utah voters are sick of partisan politics. However, they may need to take a look at themselves. Perhaps the most surprising finding from the Utah Foundation in 2024 was that half of voters think the policies of the Republican Party threaten the nation’s well-being, and half of voters believe the Democratic Party threatens it. One in six Utah voters think both parties do.
This is certainly concerning. We will see hyper-partisanship on the Hill this year — just like every other year. Nonetheless, there is a glimmer of hope in that Utahns believe that there is a way forward through partisan politics. Three-quarters of voters agree that compromise is how things get done in politics, though conservatives are less likely to agree.
Due to the partisan wrangling we see on the hot-button bills, all the discussions seem contentious. However, many Utahns are unaware that most bills see compromise across parties — even those sponsored by the supermajority Republican party.
The 2025 general session will likely cause concern for Republicans, Democrats and unaffiliated voters. This will be the case for some of the most contentious discussions during the session. However, looking deeply into all the bills that pass, we’ll hopefully feel that some real good will have been accomplished come mid-March.
This op-ed, written by Utah Foundation President Shawn Teigen, originally appeared in the Deseret News.
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