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Tennessee Sales Tax Rate Is Highest In U.S.
WSMV Nashville, TN. ^ | 10/25/2009 | WSMV

Posted on 10/25/2009 3:58:21 PM PDT by The Magical Mischief Tour

CHATTANOOGA, Tenn. -- A study shows Tennessee's average 9.4 cent tax on every $1 spent is the highest sales tax rate in America. Opponents of the sales tax say it's most unfair to those least able to pay but others favor the sales tax over a state income tax.

The author of the tax comparison study, Tax Foundation staff economist Kail Padgitt, said an increasing number of states are raising so-called "millionaire taxes" on income of the wealthiest taxpayers and so-called "sin taxes" on cigarettes or beer. Padgitt told the Chattanooga Times Free Press the foundation is "definitely seeing more movement upward than downward in taxes on the state level, and the most popular seem to be to target particular types of tax groups."

The nonpartisan study group said the average 9.4 cents combined state and local sales taxes for every $1 spent by consumers in Tennessee is nearly 38 percent more than the median sales tax nationwide. By comparison, the combined state and local sales tax rate averages just over 7 percent in neighboring Georgia and 6.15 percent in Alabama. Although some localities in central Alabama have higher combined rates of up to 11 percent, Tennessee averaged the highest rate among all 50 states. The Tax Foundation said Tennessee derives nearly 57 percent of its tax revenue from sales taxes, third highest among the 50 states.

Critics of Tennessee's reliance upon consumer taxes say it is unfair to the poor and sends consumers to border states to shop. "Tennessee's sales tax is regressive tax so those that can least afford it have to pay the most," said Samantha Maples, a community organizer for Tennesseans for Fair Taxation, a pro-income tax group. "In addition to being unfair, the sales tax also hurts businesses along our borders and it is simply inadequate to fund our government." But Drew Johnson, president of the Tennessee Center for Policy Research, said relying on sales taxes is better than using income taxes to fund government.

Tennessee is one of nine states that does not impose a tax on earned income, although the state does have a Hall income tax on dividend income. "Our sales tax in Tennessee doesn't need to be as high as it is and the government should look for ways to cut spending and waste," Johnson said. "But the sales tax is still the fairest and most responsible way to tax residents of the state. Tennessee is a haven for entrepreneurs because we don't have an income tax."


TOPICS: Business/Economy; Crime/Corruption; Government; US: Tennessee
KEYWORDS: healthcare; salestax
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To: iowamark

beats an income tax


61 posted on 10/25/2009 7:07:29 PM PDT by Figment ("A communist is someone who reads Marx.An anti-communist is someone who understands Marx" R Reagan)
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To: Coldwater Creek

Food tax is one percent in South Carolina.

It’s eight percent in Tennessee.

That explains why there are no fat people in Tennessee!

;^)


62 posted on 10/25/2009 7:18:13 PM PDT by elcid1970 ("O Muslim! My bullets are dipped in pig grease!")
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To: raybbr
No it’s not. Chicago has a 10.25% rate.

Tazewell County, central Illinois - 10%.

63 posted on 10/25/2009 7:38:45 PM PDT by Graybeard58 ( Selah.)
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To: elcid1970

Man.

Income tax of 25 percent federally, 12 percent provincially, 12 percent sales tax, plus a 3 percent on total value property tax. Canada sucks, and I live in one of the lower tax jurisdictions.


64 posted on 10/25/2009 7:42:39 PM PDT by BenKenobi
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To: The Magical Mischief Tour

You are nearly forcing our hand in explaining the benefits to our tax structure. Not wise IMHO. I am at 9.25 sales and a property tax very close to my home value. It’s enough.


65 posted on 10/25/2009 7:47:45 PM PDT by eyedigress
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To: ncalburt

A tax class should be required in every school but that seems to be one the lefties leave out. Either make it easy for us to take your money or figure it out yourself is their mantra.


66 posted on 10/25/2009 8:01:49 PM PDT by eyedigress
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To: eyedigress

i agree. the same group publishes the same story every year with the help of the local leftists media .
i havent lived in TN in 14 years and the same identical story was published back then by the same leftists !


67 posted on 10/25/2009 8:11:45 PM PDT by ncalburt (San Fran Nan , Your Harvey Milk was gunned down by a fellow Dem-RAT)
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To: Roses0508

There is no state income tax, no state wheel tax or state property tax. However, there are local wheel taxes and I pay city and county property taxes.

On my appraised $70,000 house, I pay around $1400 a year in combined property tax to county and city. Wheel tax is $50 if I remember correctly per vehicle.

Still no income tax though!


68 posted on 10/25/2009 9:16:04 PM PDT by packrat35 (The problem with socialism is that you eventually run out of other peoples money.- M Thatcher)
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To: Koblenz

Yes they do.


69 posted on 10/25/2009 9:21:05 PM PDT by packrat35 (The problem with socialism is that you eventually run out of other peoples money.- M Thatcher)
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To: animal172

Agreed, nothing could be more fair then a user tax.


70 posted on 10/26/2009 2:51:28 AM PDT by 101voodoo
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To: The Magical Mischief Tour

This appears to be the source of the data:

http://www.thestc.com/STrates.stm


71 posted on 10/26/2009 3:07:06 AM PDT by Fresh Wind ("Prosperity is just around the corner." Herbert Hoover, 1932)
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To: Fresh Wind

72 posted on 10/26/2009 3:08:39 AM PDT by Fresh Wind ("Prosperity is just around the corner." Herbert Hoover, 1932)
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To: meyer
Don't forget the Ohio has sales tax on food eaten inside a restaurant.

I love to sit inside a McDonalds and watch customers tell them their order is "to go" and then take it to a table to eat.

73 posted on 10/26/2009 3:28:24 AM PDT by sausageseller (http://coolblue.typepad.com/the_cool_blue_blog/)
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To: Orange1998; Rome2000
We've seen a huge influx of people from Florida moving here. When they come here to look at homes, farms, etc. they are amazed when they see the beauty of the land, cost of property/homes, and the cost of living and taxes. Our land is flat to gently rolling with 30 acres in good hay and 14 acres in hardwood. There is a large spring fed pond on the property. The old house is not large but it's well kept. It was built in the 50's from red oak cut on the farm. The whole house is built from red oak, including the roof. :-) I wouldn't want to pay to build one like that today!

A man I know that lives in Burbank California said that our land and this house would sell for 10 times in California what it's worth here. The farm is in a great location. We are way out in the country, between Chattanooga and Knoxville but only 2 miles from I-75. There is a small mountain between the farm and the highway so we don't see it or hear it. There is nothing but farmland as far as we can see.

I have some pictures here if you want to see what I have for $680 a year in taxes:

Farm

74 posted on 10/26/2009 4:35:24 AM PDT by Melinda in TN
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To: The Magical Mischief Tour

Well worth pointing out, an income tax in TN is Constitutionally forbidden.


75 posted on 10/26/2009 7:04:58 AM PDT by fieldmarshaldj (~"This is what happens when you find a stranger in the Alps !"~~)
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To: 668 - Neighbor of the Beast

Car insurance is higher in TN than what it was for us in Riverside California. I understand after being here for 2 years and seeing how these people drive. And yes; I do hate the high sales tax also


76 posted on 02/08/2010 2:03:50 PM PST by Hate Tennessee
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