Tennessee Debates Statewide Income Tax.
Position | Brief Article |
During the last weeks of June, efforts to finalize the budget in the state of Tennessee resulted in a near government shut down as the governor vetoed a budget bill that did not contain the income tax he wanted. The governor was pushing for a 3.75 percent tax on wages to raise money for education and health care to keep Tennessee from becoming "a second-rate state." Just two hours later, the House swiftly overrode the governor's veto. The House Majority Leader defends the current budget proposal. While the governor believes that an income tax is the most equitable approach, he is open to other means of tax reform. In exchange for an income tax, the governor proposed eliminating Tennessee's regressive 6 percent sales tax on food, dropping the tax on investment interest and dividends, and reducing the overall sales tax to 3.75 percent. Tennessee is...
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