Sen. Hillyard concerned with what will happen January 1, 2011

State revenues are up in some areas and down in others according to State Senator Lyle Hillyard, R-Logan, who is co-chairman of the legislature’s Executive Appropriations Committee. On KVNU’s Crosstalk show Monday, Sen. Hillyard said the unemployment rate stays pretty level but his concern is that there is not much money for capitol gains. “That’s when people sell and develop land, they sell stocks, whatever,” Sen. Hillyard explained. “I’m really, deeply concerned with what’s going to happen on January 1st. “If the Bush tax reductions are not reinstated, and you increase capitol gains (taxes), all the economists I’ve talked to say once you raise a capitol gains rate you lose money because people then don’t sell, they do more trading, whatever they need to do to avoid the tax. “If that remains on key then I suspect it will be even more bleak on our state level.” That would drive up the deficit but Sen. Hillyard says the federal government has to live with that. He says the feds could either cut spending significantly or increase taxes. He says that Utah lawmakers have made a significant amount of spending reductions.

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