Posted on 05/28/2002 5:53:14 AM PDT by GailA
Edited on 05/07/2004 9:20:02 PM PDT by Jim Robinson. [history]
Backers of a state income tax plan that could re-emerge as early as this afternoon cite, as a big selling point, its ability to capture taxes of people who work in Tennessee but live out of state, including professional athletes and big-time entertainers.
(Excerpt) Read more at tennessean.com ...
The General Assembly's server is being OVERLOADED. So I strongly suggest PHONE CALLS!
Folks to target:
Ralph Cole (R) Ron Davis (R) Stancil Ford (R) Steve McDaniels (R-chair of House GOP) Raymond Walker (R) Zane Whitson (R) co-sponsor of benedict naifeh's IT Keith Westmoreland(R) Chris Newton (R) co sponsor of expand sales tax to services Frank Buck (D) George Farley (D) John Tidwell(D) John Mark Windle(D)
On the left side of the page are these choices: Information, Senate, House, Joint, Bills and Other Links. These options should get you to any information you need including office numbers, phone numbers, email addresses, committee assignments, legislative bills, etc.
Toll Free calling 1-800-449-8366 + extension (1 + last 4 digits of their Nashville legislative office) or call the switchboard at (615) 741-3011.
PLEASE NOTE THE MEDIA AND BOSS HOGG HAVE FAILED TO INFORM THE PUBLIC THAT SENIOR CITIZENS WHOSE SOCIAL SECURITY CHECKS AND PENSION CHECKS ARE CURRENTLY SUBJECTED TO THE FEDERAL INCOME TAX WILL HAVE THEIR CHECKS SUBJECTED TO THE STATE INCOME TAX. AS WILL UNEMPLOYMENT CHECKS.
Vote to defeat tax wove surprises amid patterns
By Richard Locker locker@gomemphis.com
May 28, 2002
NASHVILLE - The geographic voting patterns on the income tax bill in the state House last week underscored many of the new realities in Tennessee politics - but also turned the conventional wisdom upside down in other instances.
Predictably, the vote illustrated the rise of suburban Republicanism in the fast-growing, more affluent areas around Memphis, Nashville, Chattanooga and Knoxville. No Republican from those suburban belts voted for the tax reform plan.
But another political maxim holds that rural West Tennessee - home of the swing vote that determines statewide elections - trends conservative. Yet the region was virtually solid in favor of the reform plan considered the most progressive of the major tax bills pending in the General Assembly.
Only one House member from west of the Tennessee River outside Shelby County, Rep. Phillip Pinion (D-Union City), voted "no" on the income tax plan. The 10 others voted for the plan, including House Republican Leader Steve McDaniel of Parkers Crossroads.
Also striking were the votes of the Nashville and Knoxville delegations, which represent the two largest institutional recipients of state tax revenue: state government headquarters and the University of Tennessee. Despite the possibility of massive cuts, only two of the 10 Davidson County representatives and two of the seven from Knox County voted for the plan.
That was a sharp contrast to Memphis, where 11 of the city's 12 representatives voted "yes" - all but Republican Rep. Joe Kent, whose district now includes part of Germantown and southeast Shelby County.
All five of Shelby County's suburban Republicans opposed the plan.
The tax reform proposal by House Speaker Jimmy Naifeh (D-Covington) would enact a flat-rate, 4.5 percent state income tax but exempt the first $15,000 for single taxpayers, $30,000 for married couples, $22,050 for single heads of households and $1,500 for each additional dependent. It would abolish sales taxes on grocery food, clothing up to $100 and nonprescription drugs, but raise taxes on cigarettes and alcoholic beverages.
It was the first time an income tax plan was called up for a floor vote in either the Senate or House in the four-year-old legislative debate over budget and tax issues. There were 45 in favor, 49 against, four abstaining and one member absent.
Naifeh is working to gain the five votes he needs for passage in the 99-member House, and could bring the measure back for another vote as soon as Wednesday.
Two weeks before last Wednesday's vote, Naifeh complained that other than Memphis and Clarksville, few lawmakers from the state's university towns were backing tax reform despite the likelihood of large cuts at the institutions if it fails.
That prediction held generally true, although he did pick up the backing of two Republicans representing the East Tennessee State University area: Reps. Paul Patton of Johnson City and Keith Westmoreland of Kingsport.
In all, eight Republicans joined 37 Democrats in voting for the bill, denying the GOP its ability to proclaim monolithic opposition to the tax but also underlining the conventional wisdom that East Tennessee Republicans are more moderate than suburban Republicans near Memphis and Nashville.
Seven of the eight GOP votes in favor of the income tax were from rural East Tennessee.
Outside of Metropolitan Nashville, eight of the 12 rural midstate representatives favored the Naifeh plan. Conversely, two Democrats who represent some of the most economically depressed rural areas, voted "no" - Reps. John Mark Windle of Livingston and Les Winningham of Huntsville.
The opposition in the Nashville area to the Naifeh-sponsored plan, especially among Democratic legislators, may stem from several undercurrents.
First, the city has the highest per-capita income of any of the state's four largest cities.
Second, there is the constant anti-tax barrage of two conservative Nashville radio talk-show hosts and the noisy anti-tax demonstrations they lead.
There is also a simmering resentment of the political power of West Tennessee Democrats, led by Naifeh.
Contact Nashville Bureau chief Richard Locker at (615) 255-4923.
When the Federal income tax was debated on the floor of the Senate, all the rhetoric was aimed at taxing "the rich." One Senator, more alert to the possibilities than most, rose to ask what recourse we would have were the tax someday to rise as high as 10% of a citizen's income? A pro-income-tax Senator scoffed that the objector was chasing a fairy tale, as the people would never allow it!
Don't let it happen to you, Tennessee.
Freedom, Wealth, and Peace,
Francis W. Porretto
Visit The Palace Of Reason: http://palaceofreason.com
Income tax bill includes cap
By BONNA de la CRUZ Staff Writer
Backers of a state income tax plan in the House say a proposed cap on tax revenue will prevent runaway government spending.
Two House committees approved a flat-rate income tax plan with a cap last week. The plan could be called up for a House vote as early as Wednesday.
''There's no question that the cap is a positive selling point to those, including myself, who fear that a tax reform package would ultimately lead to a much larger state government,'' said Rep. Matt Kisber, D-Jackson, chairman of the House Finance Committee.
However, Bill Ford, a banking professor at Middle Tennessee State University and a former president of the Federal Reserve Bank of Atlanta, disputes proponents' claims. He said that the proposed 6% cap would be nearly a 25% increase in Tennessee taxes, although he has not done any calculations.
''That is not a cap. That is totally deceptive. They keep referring to this as tax reform, but what they're really talking about is a huge tax increase,'' Ford said.
The bill being pushed by House Speaker Jimmy Naifeh sets the cap at 6% of the state's economy as measured by gross personal income, which is the total of all income earned by Tennesseans.
Under the bill, taxes collected above the 6% level would be rebated to taxpayers, UNLESS the cost to administer the rebates would exceed the excess. In that case, the amount over 6% would be deposited in the state's so-called rainy day reserve fund.
In 2001, that gross income number was $153.6 billion. In 2002, it is expected to be $157.8 billion, according to the University of Tennessee Center for Business & Economic Research.
Dr. William Fox, the economist who directs the UT economic center and advises the General Assembly, said that 4.9% of the state's projected gross personal income goes to state taxes under the existing state tax structure.
The tax plan would add an estimated $1.2 billion to state tax collections, pushing the percentage of gross personal income to 5.6%, Fox said.
''That's generally where we've been,'' he said, adding that a 6% cap is relatively low. ''There is no capacity to raise any tax of any noticeable size and stay under that cap.''
Nationally, the average percentage of state taxes as a share of state personal income is 6.43%, said Fox, citing U.S. Census figures.
Naifeh's proposal would impose a 4.5% income tax on adjusted gross income above $15,000 for a single filer, $30,000 for a joint filer and $22,500 for a single head of household. All sales taxes would be taken off grocery food, clothing and nonprescription drugs.
The 6% Hall Income Tax on stock dividends and bond interest earnings would be repealed. The plan would tax 50% of capital gains.
The cap has always been part of the plan, Kisber said.
Proponents of a cap point to another potential protection for taxpayers: A proposed constitutional amendment that would require a three-fifths vote (instead of half) of the legislature to raise tax rates or create tax exemptions is working its way through the General Assembly.
State Comptroller John Morgan said that over the past 30 years the share of the state economy represented by state tax revenue has approached 6%, making it a good benchmark for a cap.
Fox said that in recent years the state's tax structure had struggled to keep up with the grow- th in the state economy, resulting in a lower share of tax revenue compared with the state's economy.
To keep up, the state would have to increase the rates of existing taxes, Morgan and Fox said.
''The plan proposed by Speaker Naifeh is focused on getting better revenue growth and getting government back to the size it was before,'' Fox said. ''The intent is not to increase the size of government.'' MY NOTE: then what do you call the 300 NEW employees needed for a T-IRS if not increasing the size of government?)
Middle Tennessee State University's Ford said that the use of personal income as a measure was flawed and that the legislature should use inflation and population growth instead.
If it did, it would show that tax collections from 1987 to 2000 outpaced inflation adjusted for population, he said, citing an analysis by The Tennessean published earlier this year.
''It's a spending problem, and we do not need to hit Tennesseans with $1.2 billion in new taxes next year,'' Ford said.
Fox defended the use of the personal income measure.
Using population and inflation as measures does not take into account productivity growth while personal income does, Fox said.
Bonna de la Cruz can be reached at bdelacruz@Tennessean.com or 726-4892.
We can't let the people think that if they work harder they will actually get to keep what they earn!!!
Then fight just as hard to vote the bastards out.
I'm with you in spirit!
Typical of Tennessee Dimocrats' approach to taxation - "It's really just a tax on somebody else!"
As typified by the current income tax, the Hall Tax on investment income, or "Unearned Income" as the legislature so cleverly called it!
We have this tax in Missouri and they are always hitting us up for 1/2 percent to 1 Percent every few years.
If you keep putting food in the trough, ( a long shallow often V-shaped receptacle for the drinking water or feed of domestic animals) the pigs never stop eating
This is unadulterated horse hooey. People who don't itemize don't do it out of LAZINESS - they take the Standard Deduction because they don't HAVE enough deductions to beat the Standard. Our house is paid for, so we don't have the mortgage interest deduction - and thus can't itemize. Oh, we COULD...if we felt like paying more taxes.
I would guess that the number of people who would be pushed over the line into deductible territory by this ShamTax would be quite small. It's pretty rare to miss the itemization amount by just a little bit. You either miss it a mile or you have enough to itemize.
Michael
It would take place July 26-28 in time for back-to-school purchases. Over that weekend, there would be no state or local sales tax on clothing. Only items of clothing costing more than $500 would be taxed on the amount over $500. The cost to the state would be $8.4 million. Local governments would be reimbursed by the state the amount of tax they would have collected.<<
OK, what happens to business in the stores the two or three prior weeks when all the "soccer moms" decide to put off buying anything until the tax holiday. Would anyone in their right mind want to go anywhere near Walmart on that weekend? : )
When my boys were in school I took full advantage of those sales to stock up on paper, pens and pencils. Clothes I've always bought on an "as needed" basis when they were ON SALE. People don't really buy that many back to school clothes. What they do buy is those pens, paper, pencils, notebooks, folders, etc. ALL which will have the sales tax on them.
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