Report: TN Tax Structure is 'Leaving Money on the Table' on The Murfreesboro Post

Sidebar Ads

Report: TN Tax Structure is 'Leaving Money on the Table'

Related Articles

Housing market shows continued improvement

LETTER: Precious metals better investment than paper money

Report: Gas prices remain stable

Make Cannon County your destination

Mayor recommends property tax increase

US Treasury to sell more GM shares

TN REPORT: Governor signs per diem reduction bill

RuCo has budget issues on horizon

TN REPORT: Senate passes tax cut on groceries

Economic news signals lagging fuel demand

View All

By: RANDY O'BRIEN, Tennessee News Service

Posted: Tuesday, April 13, 2010 9:38 am

NASHVILLE, Tenn. - Tax issues were served up to Tennessee lawmakers Monday, as a Senate subcommittee took up a proposal that would change some of the state's tax structure so as to decrease the cost of food.

And a report released Monday by the organization Tennesseans for Fair Taxation (TFT) shows how such a move would benefit not only the state's bottom line, but taxpayers as well, because of federal tax breaks and lower overall taxes for those with lower incomes.

TFT executive director Elizabeth Warren explains that the proposal the state legislation has on the table would cut the state portion of the sales tax on food by two percent.

"And in order to make up for the revenue that would be lost by lowering those sales taxes that will help low and middle-income people, we would implement a graduated-rate income tax," she said.

Warren said lowering the state sales tax is also an issue of fairness for those with lower and middle incomes.

"They really are paying a higher percentage of their total personal income annually in taxes than people who make over $120,000 a year," she added.

Tennessee currently doesn't have an income tax, and there are efforts afoot to try to keep things that way. The new TFT report documents ways in which Tennessee and other no-income-tax states could better weather the recession by diversifying their tax systems.

The proposed Tax Modernization & Economic Stimulus Act (SB2054 by Sen. Reginald Tate & HB2182 by Rep. Larry Turner) is at wapp.capitol.tn.gov.

Tagged under Economy, State, Taxes

Member Opinions:

By: RonB on 4/13/10
So they are going to get more tax money, but they are going to lower taxes. I really don't understand how these people think. Reading the state constituion, it is very clear that a state income tax is unconstitutional. It spells what can be taxes, and what cannot.