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Editorial 5/21: Why block state tax relief for so many? May 21, 2002 STATE LAWMAKERS will try again this week to enact a plan that would cut taxes for as many as three of every five Tennessee taxpayers. What a dirty trick that would be. An analysis prepared for Tennesseans for Fair Taxation, a tax reform advocacy group, concludes that a proposal sponsored by state House Speaker Jimmy Naifeh (D-Covington) would mean lower state taxes overall for nearly all Tennessee families that earn less than $62,000 a year - 60 percent of the state's households. It would do so by...

It's close. It's very close. Gov. Don Sundquist, Speaker Jimmy Naifeh and Sen. Bob Rochelle are as close as they have ever come to having the votes to pass a Tennessee income tax. The vote could come this week if the votes are there, but could be rolled until next week if they are not. The "best guessers" I can find put Naifeh's income tax votes in the House in the mid-40 range. He needs 50. There are those who think he can get as high as 48. The danger for anti-income tax Tennesseans (that would be two-thirds of us)...

<p>There's more to the tax proposal being considered by state lawmakers than a state income tax.</p> <p>Although the 4.5% flat-rate tax is the central and most controversial component, the plan proposes other changes to Tennessee's tax structure, including reductions in some sales taxes.</p>

Income tax foes say budget woes are worse in states that have one By The Associated Press May 19, 2002 NASHVILLE - Income tax opponents in Tennessee note that other states with income taxes are struggling financially this year and have been forced to raid reserves, lay off workers, freeze government travel and curtail other spending. "If we look around the Southeast and our border states, we see their predicaments by some measures are worse than ours," Sen. Doug Jackson, D-Dickson, said last week during a presentation on the state's fiscal situation. He said several states are suffering $1 billion...

Coalition: Most pay same or less with flat tax By Tom Sharp, Associated Press May 18, 2002 NASHVILLE - An analysis of the 4.5 percent flat-rate state income tax plan sponsored by House Speaker Jimmy Naifeh concludes the tax burden would be less or the same for 60 percent of Tennessee taxpayers. The analysis was compiled by the Institute on Taxation and Economic Policy in Washington, D.C. The results were released Friday in news conferences around the state by Tennesseans for Fair Taxation, a pro-income tax group. "The income tax is not the monster under the bed it's been made...

<p>Efforts to gain votes for the income tax appeared to hit a snag after withdrawal of support by some members of the legislative Black Caucus.</p> <p>As a result, the Senate Commerce Committee yesterday threatened to dissolve a state agency at the heart of the conflict.</p>

<p>House Speaker Jimmy Naifeh geared up yesterday to make his 4.5% flat-rate income tax proposal more attractive to House members by including tax increases on cigarettes and alcoholic beverages.</p> <p>The move came as a counter-proposal, taking a different twist on the state sales tax, ran into trouble because of wobbly revenue projections and was sent back to committee by the sponsors.</p>

Sales tax expansion legislation stalls in Tennessee House By TIM WHALEY KINGSPORT - Tax-protesting motorists, a threatened walkout by a crucial block of votes and, ultimately, no House tax votes Wednesday. Must be spring in Tennessee. As the annual budget crisis arises again - although with even more serious implications than in past years due to a lack of reserve funds - horn-blowing motorists serenaded lawmakers in Nashville Wednesday morning. Meanwhile, at least 12 key pro-income-tax votes in the Black Caucus threatened to walk out Wednesday unless the delegation saw the establishment of a minority member of the Tennessee Regulatory...

No new money, no reading initiative Lawmakers tie education plans to tax action By Tom Sharp, The Associated Press May 16, 2002 NASHVILLE - Gov. Don Sundquist's reading initiative, the most expensive new program in his budget proposal, will remain unfunded for the second straight year unless the legislature passes a tax bill to help raise money for it, lawmakers said Wednesday. The Senate Education Committee voted unanimously to recommend to the Senate Finance Committee that it limit education spending next year to this year's level and whatever is needed to accommodate enrollment growth. This year's Basic Education Program appropriation...

Though fewer than last year, Capitol protesters just as vocal By Rebecca Ferrar, The Knoxville News-Sentinel May 16, 2002 NASHVILLE - Despite days of urging by radio talk show hosts, turnout at Wednesday's anti-tax rally at the State Capitol was relatively skimpy by past standards. During the morning rush hour and in the afternoon as the General Assembly convened with the possibility of floor votes on two tax reform measures, the number of pickets on the sidewalks swelled to just over 200 at any one time. They were joined by scores of horn-honking motorists circling the block across from the...

House takes first steps toward amendment requiring extra votes to raise taxes By TOM SHARP Associated Press Writer May 15, 2002 NASHVILLE, Tenn.- The state House on Wednesday completed the first step toward amending the state constitution to require three-fifths majority votes to raise the rates of either an income tax or sales tax. "There's a lot of worry out there that if an income tax was in place it would be easy to raise it," said sponsor Rep. Randy Rinks, D-Savannah. "This would make it much more difficult to tinker with the tax system. That's what the people want...

Naifeh tax plan includes sales tax exemptions Associated Press NASHVILLE, Tenn. - If House Speaker Jimmy Naifeh's tax plan becomes law, parents would pay no sales tax on disposable diapers, but a businessman who buys an expensive suit would pay the tax on the cost over $100. Besides implementing a 4.5 percent flat income tax, the speaker's plan would create sales tax exemptions for over-the-counter drugs, food sold in grocery stores and clothing of up to $100 per article. "The speaker wanted to provide tax relief to families, especially toward families that have children, and most basic clothing can be...

<p>Backers of a state income tax plan in the House say a proposed cap on tax revenue will prevent runaway government spending.</p> <p>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.</p>

Income tax plan needs temporary sales tax hike, speaker says Associated Press NASHVILLE, Tenn. - House Speaker Jimmy Naifeh's plan to create a 4.5 percent flat income tax would require a temporary 1-cent sales tax increase to tide the state over until the new tax could be implemented. The sales tax increase is not mentioned in the 114-page bill that moved through the House Calendar Committee Thursday morning to the House floor but leaders plan to add it. Naifeh said it would bridge the revenue gap until the income tax would be in place next Jan. 1, halfway through the...

<p>With a vote on a state income tax possible next week in the House, new details about the legislation are surfacing, including plans to impose a temporary 1% increase in the state sales tax and increases in other taxes, including the tax on a pack of cigarettes.</p>

Threats, rage ratchet up tensions on Capitol Hill By Rebecca Ferrar, The Knoxville News-Sentinel May 10, 2002 NASHVILLE - As a proposal for a state income tax works its way through the legislature, the rhetoric and tension on Capitol Hill is mounting. The Tennessee Bureau of Investigation has questioned a man about a death threat Tuesday against House Speaker Jimmy Naifeh, who has proposed the plan. Other lawmakers said they have received less threatening calls at home. And an anti-income tax group issued a "terrorist alert" against Naifeh (D-Covington), Gov. Don Sundquist and Sen. Robert Rochelle (D-Lebanon), a leading income...

Tax bill clears House committee By Joe White A bill that would send the 4.5 percent flat income tax proposed by House Speaker Jimmy Naifeh cleared a key committee Tuesday and could go to the floor of the Tennessee House of Representatives next Wednesday. The bill was passed as a temporary sales tax hike by the State Senate on March 11, and thus in play was the fastest vehicle for moving the Covington Democrat’s tax reform bill to the House floor. The House Finance, Ways & Means Committee of the House Tuesday amended the bill, HB 2957/SB 2646, to carry...

Flat income tax advances; bill is ready for House By Paula Wade wade@gomemphis.com May 8, 2002 NASHVILLE - The House Finance Committee approved House Speaker Jimmy Naifeh's 4.5 percent flat income tax bill Tuesday, preparing it to be heard on the full House floor as early as next Wednesday. "It means we're getting real close," said Naifeh, who has been meeting individually with House members to get a vote count on his tax reform measure. "It's going through the committee system, it's not going to be any kind of stealth operation." Naifeh plans to bring it up on the House...

Westmoreland to back Naifeh plan if exchange tax concept doesn't garner House support By TIM WHALEY KINGSPORT - No matter what budget solution the House arrives at, state Rep. Keith Westmoreland, R-Kingsport, said 49 members of the House and two leading gubernatorial candidates "will be very happy.'' That's because they won't have to make a decision or present a plan to balance a budget deficit now projected at $1.4 billion if any improvements are included at all. Even a base continuation budget would cost the state as much as $800 million due to the use of one-time monies and deflating...

Naifeh amazed legislators don't grasp size of budget problem Associated Press NASHVILLE, Tenn. - House Speaker Jimmy Naifeh said Thursday he is "absolutely amazed" that many legislators "don't understand the gravity of the problem we're facing" as he tries to line up votes for a 4.5 percent state income tax. "They tell me they didn't realize the hole was as deep as it is," Naifeh said. Naifeh said he continues meeting individually with the other 98 House members to see if the income tax plan might pass. Gov. Don Sundquist agrees with Naifeh's assessment. "I think there is a lack...