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Deals & Tax Cuts Help Utah Consumers

Can-Do Coalition focuses on a consumer-led recovery

February 24th, 2009 Marty Carpenter - Salt Lake Chamber of Commerce

SALT LAKE CITY- (February 24, 2009) When the economy hands you lemons, make lemonade.

While the Utah economy has its challenges, there is some sweet lemonade in the form of great bargains, lower energy costs and tax relief for Utah consumers. Consumers who take advantage of these favorable circumstances will reap great values for their families and hasten Utah's economic recovery. This, coupled with the federal stimulus and state actions, will help get the economy back on track by the end of this year.

That is the message of Utah business leaders who have joined the Utah Economy Can-Do Coalition, a group of business and community leaders who believe Utah's economy needs a jump-start to restore the state's economic vitality.

"Consumers are the lifeblood of our economy and for understandable reasons they need relief in order to spend again," said President and CEO of the Salt Lake Chamber Lane Beattie. "Thankfully, the market is delivering relief in the form of lower prices. And now a federal tax cut and other tax provisions will make it even easier to be prudent and wise in our spending."

With the passage of federal tax cuts, plus lower costs for gasoline and natural gas, consumers will have more cash in their pockets. One in every three dollars of the $787 billion federal stimulus is a tax cut, including $116 billion in tax credits for working Americans and various incentives to purchase homes, automobiles, a college education and other items. Experts estimate that the worker tax credit will provide $350 million in tax relief for Utahns in 2009 and $425 million in 2010.

In addition, if today's lower gas prices can be sustained, Utahns will have $2 billion more on an annual basis to spend on other items. Home heating costs have also been reduced by $63 million and Questar Gas has proposed an additional $157 million.

"The combination of lower prices and tax relief have created the right conditions for a consumer-led recovery," said Jake Boyer, the President of the Boyer Company. "Think of it as a perfect storm for consumer spending. Many consumers have more money now than a few months ago and they get a lot more value from every dollar that they spend."

The Utah Economy Can-Do Coalition points to a number of factors that combine to make this the ideal time for consumers to get value for what they purchase—especially on big ticket items.

• Housing prices have dropped for four consecutive quarters and the federal government is now offering an $8,000 tax credit for first time homebuyers. The credit applies to both new and resale homes and does not have to be paid back. Low mortgage rates also make this a very strong buyer's market.
• Home furnishings are more affordable. Advertised specials show savings of 13 percent for flat screen televisions, 17 percent on ovens, 23 percent on furniture and 50 percent on carpet. Retailers say this is the best value available to consumers in three decades.
• Utah auto dealers now offer savings ranging from 20 percent to 30 percent off the manufacturer suggested retail price. Coupled with lower interest rates, consumers can get a vehicle today that would have cost thousands more only a year ago.
• Over 95 percent of the Utah labor force remains employed – a figure that is nearly three percentage points above the national average. This means that many Utah families can make wise and prudent purchases on needed items.

"Utah is bucking the trend," said Chris Redgrave, chair of the Salt Lake Chamber Board of Governors and Vice President of Bonneville Salt Lake Radio Group. "We're in an enviable position because we're seeing prices drop faster than the employment rate. Those Utahns in a position to buy are getting a lot for their money."

In addition to supporting a consumer-led recovery, the Utah Economy Can-Do Coalition continues to support meaningful state investment to create jobs and invest in the future. They support investment in highways, state buildings and housing to create jobs, full funding of the Utah Science Technology and Research (USTAR) teams, prudent cuts in state spending and transportation user fees to pay for highway investment.

About the Utah Economy Can-Do Coalition

The Utah Economy Can-Do Coalition is a group of business and community leaders who believe Utah's economy needs a jump-start to restore Utah's economic vitality. The have joined forces to support needed investments in the Utah economy, federal tax relief and prudent cuts in the state budget. Salt Lake Chamber convened the Coalition to accelerate Utah's imminent economic recovery.

For more information, visit www.slchamber.com.