Tax burden on Utah’s imaginary family — almost 25%

Apr 19, 2022, 12:26 PM
a tax form, 1040, is often used to file taxes...
A hypothetical family, the Beehives, is used to show what the tax burden a typical family in Utah would pay. Photo credit: Getty Images.

SALT LAKE CITY — The Utah Taxpayers Association created an imaginary family — Bob and Brooke Beehive and their three kids –to look at the tax burden a typical family in Utah would pay.

Their annual tax burden report shows Social Security and Medicare payroll taxes are by far the largest part of the tax burden, while state sales and income taxes also make up a significant share.

With help from child tax credits and exemptions, the Beehives would receive a federal tax refund of $2,321 on an adjusted gross income of $84,089 — somewhat higher than Utah’s median income as reported by the U.S. Census Bureau of $74,197.

Taxpayers Association President Rusty Cannon said the burden of federal payroll taxes is something many Utahns may not think about.

“The one thing that we hope this report shows that most people might not know is the massive amount of payroll and Social Security taxes everybody pays, and this is a federal conversation,” Cannon told KSL NewsRadio. 

While most people see half of the payroll taxes deducted on their pay stubs, Cannon said they’ve accounted for the full amount.

“You’re paying it. It’s just being remitted by your employer to the government, and so it’s an indirect tax that we think definitely needs to be measured and part of the calculation,” Cannon said.

Looking at the last legislative session, Cannon said lawmakers enacted a small cut in the state’s income tax, dropping the rate from 4.95% to 4.85%. But he said some neighboring states are being much more aggressive about tax cuts.

“We’ve got several neighbors — Arizona just went to two-and-a-half percent. Nevada’s zero. Wyoming’s zero. Idaho just cut theirs by a half-a-percent,” he said.

Cannon said Utah’s efforts at water conservation could also help lower the tax burden. As providers move away from property tax subsidies for water to a system based on user fees.

Related: What the delay in receiving a tax refund this year will mean for Utahns



Sen. Mike Lee will go to a primary election, but face no Democrat opponent....
Kira Hoffelmeyer and Lindsay Aerts

Utah Democrats will back an independent Evan McMullin, John Curtis facing primary challenger

Utah Democrats won't be putting forward a challenger for Republican Sen. Mike Lee but instead joining forces with an independent name. 
2 months ago
FILE - House Minority Leader Kevin McCarthy, R-Calif., responds to reporters at the Capitol in Wash...
The Associated Press

McCarthy, Trump have ‘positive’ call despite Jan. 6 audio

House Republican leader Kevin McCarthy had a positive phone call with then President Donald Trump.
2 months ago
Inflation caused gas to skyrocket....
Curt Gresseth

Sen. Mitt Romney talks inflation and economy

High home and gas prices and inflation, are causing real hardships for Utahns and Democrats will be blamed by voters, Sen. Mitt Romney told Inside Sources.
2 months ago
West High Students at their walkout. H.B. 11 Survey said over half of utahns approved....
Devin Oldroyd

Poll shows Utah men support transgender athlete ban more than Utah women

According to the survey, 51% of men strongly support H.B. 11, and only 37% of women do.
2 months ago
Cherie Wood...
Curt Gresseth

South Salt Lake mayor defends new $130,000 salary

The mayor of South Salt Lake defended her latest salary of $130,000 by saying she hasn't received a pay raise in 11 years in office.
2 months ago
South Salt Lake at Southern X-posure, the site of a deadly shooting....
Curt Gresseth

South Salt Lake resident wants to stop mayor and City Council from awarding themselves raises

A South Salt Lake resident has taken his ballot initiative on pay raises for city leaders to the Utah Supreme Court after being rebuffed by the city attorney on what he said was a technicality.
2 months ago

Sponsored Articles

Prescription opioid...
Know Your Script

Prescription opioid misuse | How to protect your family from the opioid epidemic

Studies have shown that prescription opioid misuse has increased since COVID-19. So what do you need to know about these opioids?

Tax Tuesday: The Most Common Mistakes People Make When Filing Their Taxes

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.

Tax Tuesday: How will last year’s child tax credits affect you?

Fortunately, for most average earners, they will not end up owing overpayments received for the Child Tax Credit in 2021.

Tax Tuesday: Key Information Before the Filing Deadline

Businesses can receive a credit of up to $5,000 per employee in 2020 and up to $21,000 per employee in 2021.
national heart month...
Intermountain Healthcare

National Heart Month: 5 Lifestyle Changes to Make Today to Keep You Heart Healthy

Heart disease is the leading cause of death for both men and women. One person dies every 36 seconds in the United States from cardiovascular disease
Joseph Smith Memorial Building...
Temple Square

The Joseph Smith Memorial Building is an icon of Salt Lake City | Why hosting an event at this beautiful location will make you a hero this year

Here's why hosting an event at the iconic Joseph Smith Memorial Building in downtown Salt Lake City will make you a hero this year.
Tax burden on Utah’s imaginary family — almost 25%