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Tennesseans for Fair Taxation

Tennesseans for Fair Taxation


Last Updated: 6/24/2009

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Gender: Female
Status: Single
Age: 29
Sign: Capricorn

City: KNOXVILLE
State: Tennessee
Country: US
Signup Date: 11/18/2008

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Wednesday, August 12, 2009 

Current mood:  worried
http://www.knoxnews.com/news/2009/aug/12/taxes-take-historic-dive/

JULY REVENUES

NASHVILLE – State tax revenues continued to decline in July, making it the first time in Tennessee history the state has experienced a full year of negative growth.  Finance and Administration Commissioner Dave Goetz today reported July revenue collections, pointing to sales tax collections which have experienced negative growth for 17 out of the past 19 months when compared to the year before.
“Franchise and excise tax collections showed positive growth for July, but all the over collection resulted from significant one-time payments, not from an upswing in economic activity in Tennessee,” Goetz said. “We continue to strictly monitor revenue collections and our expenditures in order to maintain a balanced budget.”
Overall July revenues were $815.0 million or $61.8 million less than the state budgeted.
On an accrual basis, July is the twelfth month in the 2008-2009 fiscal year.
The general fund was under collected by $47.5 million, and the four other funds were under collected by $14.3 million.
Sales tax collections were $81.3 million less than the estimate for July.  The July growth rate was negative 10.88%. For twelve months revenues are under collected by $687.9 million. The year-to-date growth rate for twelve months was negative 7.66%.
Franchise and excise taxes combined were $27.1 million over the budgeted estimate of $53.8 million. The growth rate for July was 52.25%. For twelve months revenues are under collected by $295.4 million and the year-to-date growth rate was negative 17.07%.
Inheritance and estate tax collections were $100,000 above the July estimate. For twelve months collections are $12.2 million below the budgeted estimate.
Privilege tax collections were $4.8 million below the July budgeted estimate. For twelve months collections are $61.7 million less than the budgeted estimate. The year-to date growth rate was negative 18.65%.
Tobacco tax collections were $1.5 million below the budgeted estimate of $25.0 million. For twelve months revenues are under collected by $25.8 million.
Gasoline and motor fuel tax collections for July increased by 2.85 %. For twelve months revenues are under collected by $46.0 million.
Year-to-date collections for twelve months were $1.2 billion less than the budgeted estimate. The general fund was under collected by $1.095 billion and the four other funds were under collected by $113.0 million.
The budgeted revenue estimates are based on the State Funding Board’s consensus recommendation adopted by the second session of the 105th General Assembly in May of 2008.
The revised estimates for this fiscal year as presented in the 2009-2010 Budget Document assume an under collection in total taxes in the amount of $1.10 billion. The general fund under collection is projected to be $1.06 billion.
By tax source the under collections are: Sales tax $544.2 million; F&E taxes $336.1 million; privilege taxes $80.6 million; hall income tax $58.0 million; highway fund road user taxes $48.6 million; and a net under collection of $40.0 million from all other tax sources.
On May 7, 2009 the State Funding Board met and adopted revised revenue growth ranges for the current fiscal year ranging from negative 9.00 percent to negative 8.50 percent for total taxes, and negative 10.20 percent to negative 9.70 percent in the general fund.
These revised ranges recognize a revenue shortfall in total taxes from the original budgeted estimates in the amount of $1.280 billion at the low end of the range to $1.224 billion at the high end. The ranges for the general fund recognize a shortfall of $1.222 billion at the low end to $1.176 billion at the high end.
Based on the May 7, 2009 recommendation of the funding board, the General Assembly adopted revised revenue estimates for 2008-2009. Year end collections of total taxes are $16.4 million more than the revised estimates, and $39.6 million above the revised general fund estimate.
Year-to-date collections for 2008-2009 are subject to final accrual adjustments.
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Thursday, July 23, 2009 

Category: News and Politics
TFT Update - July 22, 2009

In this update: 4 Articles of interest:

      
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    The Great Tax Con Job

    by Thom Hartmann

     

    A very small niche of America's uber-wealthy have pulled off what may well be the biggest con job in the history of our republic, and they did it in a startlingly brief 30 or so years. True, they spent over three billion dollars to make it happen, but the reward to them was in the hundreds of billions - and will continue to be. Click here to read the full article.
     

    Taxes and the Wisdom of Our Forebears

    By Brian Miller

      

    One-hundred years ago, on July 17, 1909, Sen. William E. Borah (R-ID) wrote the words, "The income tax is the fairest and most equitable of the taxes. It is the one tax which approaches us in the hour of prosperity and departs in the hour of adversity. Certainly, it will be conceded by all that the great expense of government is in the protection of property and wealth. There is no possible argument founded in law or in morals why these protected interests should not bear their proportionate burden of government." Click here to read the full article.

    Raise My Taxes

      

    By Nancy Folbre

    The tax system in this country is pretty complicated, and nobody knows how well people understand their place in it. David Brooks once claimed that 19 percent of Americans thought they were in the top 1 percent of the income distribution in 2000. Click here to read the full article.

    Veteran salesman's new pitch may be toughest yet

    By Josh Flory

    For Tennessee candidates looking for a losing issue, an income tax isn't a bad choice. The last governor to try it was Republican Don Sundquist, who failed to muster the votes but succeeded in riling up horn-honking protesters and anti-tax radio hosts. Click here to read the full article

    More ways to be involved!

    If you are interested in joining our lobby day efforts or attending one of our Local Organizing Chapter meetings please see our online events calendar for more information.

    Click here to sign up for action alerts and updates from Tennesseans for Fair Taxation.

    Click here to download the latest copy of our newsletter.

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    Monday, July 06, 2009 

    Category: News and Politics

    TFT Alert - July 7, 2009

    In this alert:

      Letters to the Editor Initiative

      Tennessee's economic climate is facing a long-term financial drought. With months of Federal Stimulus dollars spent, and one year left to go, Tennessee legislators need to make some meaningful changes to Tennessee's tax system in order to generate an adequate revenue stream for the state; and they need to do it fast!

      We are encouraging you, our members, to write letters to the editor (LTE) and share your voice with your community. We have provided  4 sample letters from which to choose from. You may use these letters as a guide to write your own LTE, or you may use any of the letters as is. If you are planning to send one of the sample letters as is to your news paper, please call or email us before hand to let us know to whom and which letter. We want to avoid redundancies.

      We want to thank you in advance and we look forward to reading your letter in the paper!

      Click on the links below or scroll down to see sample letters:

        
          
          
        
        
          
          
        

      Letter 1

            

      To the Editor:

          

      Now that the 2009 Tennessee legislative session has drawn to a close,  

            it’s time for a review.  There were lots of social measures of  
            questionable merit, but the big failing of this year’s General  
            Assembly had to do with the one measure they must pass every year – a  
            balanced budget.      

          

      As the year began, everyone knew we would be facing an unprecedented  

            revenue shortfall. In a disappointing display of conventional  
            thinking, the Governor and legislators agreed to respond to the  
            revenue crisis with spending cuts. I commend them for closing the  
            nonsensical Family-Owned, Non-Corporate Entity (FONCE) loophole, but  
            that raised a paltry $22M in the face of a $1.4B shortfall.      

          

      What we needed was a revenue enhancement to correct a revenue  

            shortfall. If they had tried, they could have found a way to call on  
            the top 20% of earners in the state to pay the same portion of their  
            income in state and local taxes as the bottom 80%. That measure alone  
            would have eliminated the revenue shortfall.

          

      Maybe next year.

      Letter 3

            

      To the Editor:

          

      The legislature has recently recessed, having chosen to respond to the conflagration of recession in Tennessee by adding coals to the fire, shrinking critical public services, slating 750 state employees for lay off and freezing plans to fill another 700 vacant positions.  (Tennessee's $29.6B Budget Passes, Tennessean, June 18, 2009.)  It's the Herbert Hoover economic plan.  The TFT Real Budget Deficit study reports that our $30B budget was already $3.4B short of merely bringing us up to middling standards in comparison with our sister Southern states in financing education and other critical public services. The state budget is an investment in Tennessee's future and a down payment on a better future for our children.  Our legislators urgently need to roll back our regressive sales tax and begin a progressive income tax that will address both our systematic failure to invest enough in that future and our current Herbert Hoover approach to cutting public services when they are needed more than ever by Tennessee families.

      Letter 2

            

      To the Editor:      

            

      Tennessee’s unemployment rate for May was 10.7%. It will continue to  

              rise as the 400 private sector layoffs announced this week are added  
              to the others announced in June and the idling of the Spring Hill  
              plant hits the stats. The state will be laying off another 700  
              employees in the near future.      

            

      Tennessee’s leaders have followed the course that Nobel prize-winning  

              economist Paul Krugman warned against in his December 2008 column  
              “Fifty Herbert Hoovers”. He advised the 50 governors to balance their  
              budgets with additional revenue from wealthy taxpayers rather than by  
              cutting state budgets. He warned that cutting budgets and laying off  
              state employees would make the recession longer and deeper by further  
              diminishing consumer spending. Taxing the rich would not reduce their  
              spending – only their saving. The revenue would serve to retain state  
              employees and programs and preserve consumer spending.      

            

      There was a bill in the legislature this session that would have done  

              just that. SB2054/HB2182 sponsored by Sen. Reginald Tate and Rep.  
              Larry Turner.  Let’s hope our representatives and the administration  
          will give it serious consideration next year.

      Letter 4

            

      To the Editor:      

            

      The Tennessee Legislature is to be commended for closing one of several loopholes in the state's revenue program, the FONCE (Family Owned Non Corporate Entity) program under which businesses run by members of the same family, under the old law, did not have to pay certain business taxes that everyone else has to pay.  Happily, our Democratic Governor strongly backed this correction in the law.  Although the correction will not generate a great deal of new revenue, it is the right thing to do and we are proud that our governor and legislature moved in the right direction.    

          

      But there are other loopholes that need to be addressed as well. Modernization of our revenue system in the state is long overdue.  It should include the closing of other loopholes in the present revenue system, abolishing the sales tax on groceries, reducing the sales tax on other items and establishing a tax on personal income with generous exemptions for lower income taxpayers.  The present reliance on sales taxes no longer provides the state with necessary resources because more and more money is being spent on services and non-taxed items.   Sales taxes are rarely collected on internet and mail purchases.  Other states without an income tax rely mainly on special revenue sources that are not available in Tennessee, e.g. oil in Alaska, tourism in Florida, gambling in Nevada.  Cutting state services such as education and aid to persons with disabilities is not the only way to balance the state budget.


       


      FONCE Update

      TFT is pleased to announce that the  FONCE bill passed with the support of TFT and Gov. Bredesen. This bill, as you may know, will close large tax loopholes for wealthy landowners and raise an estimated $22 million for the state. For more information on FONCE please click here. For more information on closing other tax loopholes click here.


      TFT Fundraising SUCCESS!

      We Did It! Thanks to the Generous Support of Donors Across Tennessee, We Met the Babcock Challenge... Now What?

      graphLast year, the Mary Reynolds Babcock Foundation gave TFT a challenge. They would match every dollar we raised from individuals over and above what we raised from individuals the previous year... up to a maximum of $25,000. In short, all new and increased donations are being matched dollar-for-dollar this year.

      Since we raised $40,000 from individual donors during the last budget year (July '07 to June '08), we set a goal of raising $65,000 from individuals this year (July '08 to June '09) so we can get the full $25,000 challenge grant from Babcock. As of today, we have raised $66,256, beating the $65,000 goal with six days to spare! TFT extends our thanks to all the donors across the state who made this success possible.

      So now what? The Mary Reynolds Babcock Foundation is doing it again for our next budget year beginning July 1, 2009, but they are upping the ante. They will match dollar-for-dollar all new and increased gifts over the $65,000 goal from this year. That means, we'll be aiming to raise $90,000 in individual donations in the next budget year (July '09 to June '10) to leverage the full $25,000 matching grant from Babcock. This is the kind of growth TFT needs to take seriously so we can be prepared to face the challenges of the coming years, as the stimulus runs out and pressure for new revenue mounts.

      If you are one of those who gave this year, your continued support will help us meet the Babcock Challenge in the coming year. If you did not give to TFT recently, your new or renewed support will go a long way toward helping TFT meet the Babcock challenge and build the kind of organization that can challenge political inertia and bring about real change.

      Thank you!

       

      More ways to be involved!

      If you are interested in joining our lobby day efforts or attending one of our Local Organizing Chapter meetings please see our online events calendar for more information.

      Click here to sign up for action alerts and updates from Tennesseans for Fair Taxation.

      Click here to download the latest copy of our newsletter.

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      Monday, July 06, 2009 

      Category: Friends

      TFT Remembers Ron Naylor- July 2nd, 2009

      Ron Naylor (1931-2009)

      The board of directors of Tennesseans for Fair Taxation expresses deep regret over the untimely loss of their colleague, Ron Naylor, who died on Saturday, June 27. Ron was an active board member and committed supporter of building a just and effective tax system for Tennessee and her people.
      Ron was 77 years old. He is survived by his wife, Sally, and sons Dwight Monteith of Austin, Texas and Kenneth Naylor of Miami Beach.  Ron was a resident of Mowbray Mountain’s Montlake community outside of Chattanooga.
      Ron’s professional life centered on library administration. He earned a Master’s degree in Library Science from McGill University and he served at the Universities of Chicago, Houston, Maryland, and Miami, from which he retired as Professor Emeritus in 1999.
      For the past two years Ron headed TFT’s Media Committee. He could be counted on to produce a hard-hitting and fact-filled statement on tax modernization at a moment’s notice. He also volunteered repeatedly to edit statements written by other TFT personnel: correcting grammatical errors, improving and clarifying complex sentences, making sense out of complicated paragraphs, and striking ambiguous phrases in favor of lucid, and compelling language.  He took the English language seriously.
      Ron also could be counted on during TFT board meetings to ask the key question that had eluded all others. He probed; he questioned; he cross-examined, until every member of the board knew exactly what was being decided.  He provided a model of what constituted a dedicated and involved board member.
      “Ron’s illness came upon him suddenly and with little advance notice,” observed John Stewart, TFT’s board chair. “He simply told us he had become ill, but then he continued to work as vigorously and in as committed a fashion as before,” Stewart noted. “He knew his time was extremely limited but he never complained, never expressed regret, never stepped back when editorial work needed to be done. He provided each one of us with a compelling demonstration of personal courage in the most difficult circumstances. We will remember him always.”
      Ron will be deeply missed by all who knew him and who had the privilege of working with him to advance the vital work of TFT.    
        In lieu of flowers, the family requests that donations in Ron’s memory can be made to Tennesseans for Fair Taxation, Tennessee Health Care Campaign, Hospice of Chattanooga, or the Baylor School.


       


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      Monday, June 15, 2009 
      TFT Alert - June 15, 2009

      STOP the Constitutional Ban on a State Income Tax 


      The Constitutional Ban on a State Income Tax is back in an eleventh hour push. The House Budget Subcommittee is scheduled to hear arguments this Monday, June 15, and possibly vote on a constitutional amendment, House Joint Resolution 0003, that would prohibit a state income tax. Despite the many claims over the years, and the propaganda over the issue, Tennessee's Constitution has never prohibited a state income tax. This amendment would change that rule. How would that amendment benefit the state?

      Not only would it not benefit the state, it would destroy the capabity of the state to find the necessary revenue resources to adequately fund education, healthcare and other vital public resources.


      Tennessee's economic situation is too serious for grandstanding maneuvers. This proposal is simply an attempt to get some headlines and a nod of approval from the talk show hosts. It does nothing whatsoever to help Tennessee meet its budgetary obligations. In fact, it proposes tying the hands of all future General Assemblies and absolutely guarantees unending sales tax increases as far as the eye can see, making the nation's highest sales tax even higher. The proposal is an act of fiscal irresponsibility at a time of fiscal crisis. 

      Other arguments against the resolution: 1) This ban would eliminate the public notice requirement for constitutional amendments to be published in local newspapers and substitute postings on the state web site. Many areas of the state are inadequately served with Internet access and the proposal does not provide a means of notifying the public that a notice has been posted on the web site. Changes to the state Constitution should not be taken so lightly. 2) Proper notice would cost money that we do not have. 

      Email & Call all 14 members of the House Budget Subcommittee to voice your opposition to HJR0003.

      Please remember to sign your name and address.

      Budget subcommittee of House Finance, Ways & Means Committee:

      Rep. Harry Tindell-Chairman, Democrat, District 13, Knoxville, 615-741-2031

      Rep. Charles Sargent-Vice-Chairman, Republican, District 61, Franklin, 615-741-6808

      Rep. Joe Armstrong, Democrat, District 15, Knoxville, 615-741-0768

      Rep. Lois DeBerry, Democrat, District 91, Memphis, 615-741-3830

      Rep. Craig Fitzhugh, Democrat, District 82, Ripley, 615-741-2134

      Rep. Gary Odom, Democrat, District 55, Nashville, 615-741-4410

      Rep. Jimmy Naifeh, Democrat, District 81, Covington, 615-741-3774

      Rep. Johnny Shaw, Democrat, District 80, Bolivar, 615-741-4538

      Rep. Steve McDaniel, Republican, District 72, Parkers Crossroads, 615-741-0750

      Rep. Mike Harrison, Republican, District 9, Rogersville, 615-741-7480 

      Rep. Dennis Roach, Republican, District 35, Rutledge, 615-741-2534 

      Rep. Richard Montgomery, Republican, District 12, Sevierville, 615-741-5981 

      Rep. Jason Mumpower, Republican, District 3, Bristol, 615-741-2050 

      Rep. Donna Rowland, Republican, District 34, Murfreesboro, 615-741-2804 



      We encourage you to call or email the House Finance Committee and to let them hear your objections as well. A ban on an income tax is detrimental to the fiscal health and financial security of Tennessee. Act now!

      House Finance, Ways & Means Committee Officers


      Rep. Craig Fitzhugh - Chair, Democrat, District 82, Ripley, 615-741-2134, 

      Rep. Charles Sargent-Vice-Chairman, Republican, District 61, Franklin, 615-741-6808

      Rep. Johnny Shaw - Secretary, Democrat, District 80, Bolivar, 615-741-4538



      House Finance, Ways & Means Committee Members


      Rep. Joe Armstrong, Democrat, District 15, Knoxville, 615-741-0768

      Rep. Stratton Bone, Democrat, District 46, Lebanon, 615-444-1717 

      Rep. Harry Brooks, Republican, District 19, Knoxville, 615-741-6879

      Rep. Kevin Brooks, Republican, District 24, Cleveland, 615-741-1350

      Rep. Tommie Brown, Democrat, District 28, Chattanooga, 615-741-4374

      Rep. Glen Casada, Republican, District 63, College Grove, 615-741-4389

      Rep. Kent Coleman, Democrat, District 49, Murfreesboro, 615-741-6829

      Rep. Lois DeBerry, Democrat, District 91, Memphis, 615-741-3830

      Rep. Bill Dunn, Republican, District 16, Knoxville, 615-741-1721

      Rep. Jimmy Eldridge, Republican, District 73, Jackson, 615-741-7475

      Rep. Michael Harrison, Republican, District 9, Rogersville, 615-741-7480

      Rep. Curtis Johnson, Republican, District 68, Clarksville, 615-741-4341

      Rep. Mark Maddox, Democrat, District 76, Dresden, 615-741-7847

      Rep. Debra Maggart, Republican, District 45, Hendersonville, 615-741-3893

      Rep. Steve McDaniel, Republican, District 72, Parkers Crossroads, 615-741-0750

      Rep. Steve McManus, Republican, District 96, Cordova, 615-741-1920

      Rep. Larry Miller, Democrat, District 88, Memphis, 615-741-4453

      Rep. Richard Montgomery, Republican, District 12, Sevierville, 615-741-5981 

      Rep. Jason Mumpower, Republican, District 3, Bristol, 615-741-2050 

      Rep. Jimmy Naifeh, Democrat, District 81, Covington, 615-741-3774

      Rep. Gary Odom, Democrat, District 55, Nashville, 615-741-4410

      Rep. Dennis Roach, Republican, District 35, Rutledge, 615-741-2534 

      Rep. Donna Rowland, Republican, District 34, Murfreesboro, 615-741-2804

      Rep. Janis Sontany, Democrat, District 53, Nashville, 615-741-6861

      Rep. Harry Tindell, Democrat, District 13, Knoxville, 615-741-2031

      Rep. Mike Turner, Democrat, District 51, Old Hickory, 615-741-3229

      Rep. Les Winningham, Democrat, District 38, Huntsville, 615-741-6852



      Please FORWARD this alert far and wide!

      More ways to be involved!

      If you are interested in joining our lobby day efforts or attending one of our Local Organizing Chapter meetings please see our online events calendar for more information. 

      Click here to sign up for action alerts and updates from Tennesseans for Fair Taxation.

      To find out more about TFT's legislative proposals click here.

      Click here to download the latest copy of our newsletter.

      To Donate to TFT click here, Thank you!

      2:31 PM 
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      Tuesday, May 05, 2009 

      TFT Alert - May 5th, 2009



       
         
       
       
         
       

      Attention Nashville Members!


           

      TFT is having a house party!


           

      At the home of Karen and Kent Weeks: 6025 Sherwood Dr. Nashville, Tn 37215


           

      You are cordially invited to join us for a fundraiser and reception to discuss the budget challenges facing our state, TFT's 2009 legislative agenda, and how we can bring lasting change to Tennessee.


           

      Friday, May 8th 2009 5:30 to 7:30


           

      Appetizers and refreshments will be provided!


           

      Host committee members include: Thelma Kidd, Trudy & Will Byrd, Andy Spears, Phyllis & Ray Seals, Shelby Tableling, Karen Franklin, Karen & Kent Weeks


           

      Bring a smile, your checkbook and a friend!


           

      We'll see you there!


         
       

      Tennessee's fiscal crises worsens - who will be affected?


      This week the Tennessee Journal (see below for article) reported that Tennessee's budget woes will worsen. Even with  stimulus  money,  Tennessee will be facing an additional 200 to 300 million dollar budget shortfall. This means more cuts to education, healthcare and other vital programs. Where will the money come from? School closings? Tuition hikes? Cuts to  pensions? Firings and layoffs?  Where will Tennessee be after the stimulus money runs out? Gov. Bredesen plans to gradually make cuts to higher education, layoff state employees and decrease spending in all areas.


      What makes matters worse is that even in times of economic prosperity for the rest of the country, Tennessee always seems to be suffering from lack of funding. This is evidenced by staggering statistics that show Tennessee failing miserably in state-by-state comparisons.


      Tennessee needs a comprehensive and smart tax modernization bill that will not only make taxation in Tennessee  more fair, but also generate enough revenue to advance and promote Tennessee and Tennesseans. Proper funding means more jobs, better education, better healthcare and and overall better quality of life for all Tennesseans.


      Take Action and email all 132 of your legislatures today! Tell them to support comprehensive tax modernization for Tennessee! Then, forward this email and let others know about tax modernization.


      Here is the article from the Tennessee Journal:



       

      Revenue outlook worsens as crunch time for budget nears


       

      Throughout the 2008-09 fiscal year, state officials have been able to count on one sure thing: No matter how bad
          the revenue picture is, it will get worse. By the time Gov. Phil Bredesen presented his 2009-10
          budget to the legislature March 23, the projected shortfall for the current year was $1.1 billion. Now, that figure is
          about to jump another $200 million to $300 million.
          When final April revenue figures are released in the next
          week or so, with three months of reports still to come, the
          state already will be $1 billion in the hole for ’08-09.
          The State Funding Board met today and heard
          gloomy predictions from economists. It will reconvene
          next Thursday to settle on revised revenue estimates.
          The administration then will present an appropriations
          amendment to the House and Senate finance committees.
          Reserves will have to be tapped further to address the
          higher revenue shortfall for this year. The $200-300 million
          problem will carry over, of course, into ’09-10, requiring
          either additional cuts, greater reliance on non-recurring
          federal stimulus money, or a combination of the two.
          Once the administration amendment is unveiled and
          legislators vent their consternation and agony, a budget
          will be passed. The target is the week of May 18-22,
          before Memorial Day, but only the most optimistic of
          Capitol Hill observers believe it will be met.


       

      Tennessee Journal Vol. 35, No. 18; May 1, 2009




      More ways to be involved!


      If you are interested in joining our lobby day efforts or attending one of our Local Organizing Chapter meetings please see our online events calendar for more information.


      Click here to sign up for action alerts and updates from Tennesseans for Fair Taxation.


      To find out more about TFT's legislative proposals click here.


      Click here to download the latest copy of our newsletter.


      To Donate to TFT click here, Thank you!


      7:14 PM 
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      Wednesday, April 29, 2009 

      Current mood:  excited
      Category: News and Politics
      April 29, 2009
      Hear the story here:http://www.publicnewsservice.org/index.php?/content/article/8744-1

      Nashville, TN – Action is expected today in the Tennessee legislature on a bill which seeks to help Tennessee businesses compete and also to raise millions of dollars for the state. John Stewart with Tennesseans for Fair Taxation says the Internet Parity Bill is about tightening the state's tax laws, by requiring Internet businesses based elsewhere to have the same sales tax obligations as in-state retailers do at present.

      "It is an attempt to close a significant loophole whereby out-of-state retailers who use the Internet have no legal obligation to collect the sales tax for Tennessee."

      Opponents say the bill would, in effect, be a tax increase that state residents can ill afford in this economy.

      Stewart says however that the Internet Parity Bill comes down to a question of fairness. 

      "There ought to be a level playing field so that Tennessee stores are not playing at a disadvantage."

      Stewart says independent estimates put the amount of unpaid state sales taxes in question at 20 million dollars, an amount which would help offset expected state budget shortfalls.


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      Tuesday, April 28, 2009 

      Current mood:  adored
      Category: News and Politics

      TFT Alert - April 27, 2009

      Take Action!  Important Vote This Wednesday!

      Tax Subcommittee to vote on Internet Parity Bill

      Sponsored by Sen. Marrero and Rep. Shaw, the "Internet Parity" bill (SB1741/HB1947) will make Tennessee sales and use taxes apply to goods and services sold by internet vendors who use independent contractors or representatives in Tennessee to establish and maintain a market for their business. Currently only businesses with a physical presence in the state are required to collect the sales tax. This will help Tennessee merchants who employ Tennesseans more effectively compete with out-of-state and internet-only competitors, while raising much needed funding to avoid damaging budget cuts.

      New York, which has enacted similar legislation already, is estimating $50 to $75 million in revenue per year from this loophole closing. Given that Tennessee's economy is about one-fifth the size of New York's, we can estimate $10 to $15 million annual revenue, or  $11.4 to $17.1 million annually after adjusting for Tennessee's higher sales tax rate.

      In the end, we are only asking the internet vendors to collect the sales tax from their customers like any other vendor with operations in Tennessee.

      While there is some disagreement on how much this plan will raise Tennessee has nothing to lose and quite a bit to gain.

      For more information about this bill click here.

      Take Action Now: email all 14 members of the Budget subcommittee of the House Finance, Ways & Means Committee:

      We've been busy lobbying at Legislative Plaza!

      East Tennessee TFT members lobby Legislative Plaza

      (in the picture above, from left to right) TFT members, Walter Keith, Diantha Pare, Mac Simpson and Mark Homer, visited Legislative Plaza on Wednesday, April 22nd. Along with TFT staffers, Bill Howell and Samantha Wallace the group met with several senators and representatives to discuss Tennessee's future and its out-of-date tax structure. The lobby day left members feeling invigorated, hopeful and accomplished. It was a success by all accounts.

      Mark Homer leads the charge through Legislative Plaza

      (in the picture above) Mark Homer, Walter Keith and Bill Howell smile as they walk through the halls of Legislative Plaza.

      Lobbying is hard work!

      (in the picture above) TFT takes a much needed break from tax talk to enjoy a nice lunch and good conversation.

      Walter Keith meets w/

      (in the picture above)Walter Keith meets with Rep. Richard Montgomery of Sevierville.

      East Tennessee members will be visiting Legislative Plaza one more time this legislative session on May, 20th, 2009. If you are interested in attending please call the Knoxville office at 1-888-671-5188. Middle and West Tennessee members who wish to visit Legislative Plaza are encouraged to call Bill Howell at 1-888-671-5188 ext 2 to make arrangements.

       

      More ways to be involved!

      If you are interested in joining our lobby day efforts or attending one of our Local Organizing Chapter meetings please see our online events calendar for more information.

      Click here to sign up for action alerts and updates from Tennesseans for Fair Taxation.

      To find out more about TFT's legislative proposals click here.

      Click here to download the latest copy of our newsletter.

      To Donate to TFT click here, Thank you!

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      Thursday, April 02, 2009 

      Current mood:  grateful
      Category: News and Politics

      TFT Alert, April 2nd 2009


      Victory! Income Tax Ban is Put to Bed.


      Thanks to your calls, emails, and all other efforts the proposed Income Tax ban has been stopped dead in it's tracks! Yesterday the House Subcommittee on Finance voted to put the bill behind the budget, forcing the bill to wait at least one year to be voted on again.
      As we are all very well aware, Tennessee's tax structure is out-of-date and out-of-touch. A ban on income tax would permanently disable Tennessee's ability to compete, grow and prosper. Tennessee must modernize it's tax system and yesterday's subcommittee vote was a giant step toward that goal!
      To learn more about what is possible now that we've defeated the I.T. ban download our PDF on Tax Modernization here.

      Take Action:


      1) Click here to vote your preference for tax modernization in Nashville's Channel 4 News online poll.
      2) Post your positive comments on these online news forums:

       




      Three other Bills of interest.



      Thanks for all of your support on these bills. No votes have been taken for any of the bills yet (the vote on FONCE has been deferred until the next committee meeting). We are keeping an eye on these bills and we will keep you posted.

      More ways to be involved!


      If you are interested in joining our lobby day efforts or attending one of our Local Organizing Chapter meetings please see our online events calendar for more information.
      Click here to sign up for action alerts and updates from Tennesseans for Fair Taxation.
      To find out more about TFT's legislative proposals click here.
      To Donate to TFT click here, Thank you!
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      Monday, March 23, 2009 

      Current mood:  adventurous
      Category: News and Politics
      Myth-busters inject a “dose of reality” into Legislative Plaza



      As the Governor prepares to present his proposed budget Monday evening, four “myth-busters” wearing white coveralls and wielding mock insect sprayers are visiting legislative offices Monday afternoon to inject some reality and humor into the conversations about budgets and revenues. The myth-busters are members and allies of Tennesseans for Fair Taxation (TFT).



      John Stewart, Chairman of TFT says, “We hear and read so many myths and delusions concerning the state budget, and the revenue needed to balance it, that we felt it necessary to dramatically ‘clear the air’ and spread an antidote of plain truth and common sense.”



      “The reality is that the current economic downturn is only part of Tennessee’s budget problems,” notes Stewart. Tennessee relies on sales taxes for 70% of state revenue, but sales of taxable goods have fallen from 70% to 40% of the overall economy in the last 60 years. Even with the sales tax increases of 1971, 1976, 1984, 1992, and 2002, state and local taxes as a percent of income have actually declined since 1970. “We’re just treading water at best. Anyone who denies that either does not have a complete grip on reality, or is trying to pull the wool over our eyes,” adds Stewart.



      See the November 2008 presentation by the State Comptroller for more, available at http://www.tn.gov/comptroller/shared/pdf/LeagueofWomensVoters11-1-08.pdf



      Since the cost of government activities is driven mainly by personnel costs, both for government employees and for services purchased from the private sector, the rate of growth is very close to the growth of the economy as a whole, as measured by personal income. However, our main revenue source, sales tax, has not kept pace with economic growth, even in good years. “These are irresistible market forces. When these forces collide with the myths that for too long have dominated our discussion of state revenue needs, the myths must be dispelled,” states Stewart.



      Jean Harrington adds, “Some people think Tennesseans are dogmatic and stuck in their ways, but Tennesseans are practical people when it comes down to it. Tennesseans, like all people, would prefer not to raise taxes at all. But once it’s clear that a tax increase is unavoidable, Tennesseans prefer that it take the form of comprehensive tax modernization, including elimination of the food tax, a significant cut in the sales tax on other items, and the broadening of the current state income tax to include all income, with generous exemptions and a graduated rate.”



      The support for different types of tax increases has been fairly consistent in polls done through the years. Support for creating a statewide property tax has been in the 7 to 10% range; support for increasing the sales tax has been in the 10 to 14% range; support for adding an income tax on top of existing taxes has been in the 27 to 34% range; and finally, support for comprehensive tax modernization (repeal of the food tax, reducing the sales tax, and creating a broad-based state income tax) has been in the 40 to 61% range.



      “Another one of the myths out there that needs busting is that Tennessee doesn’t have a state income tax. The reality is, we do,” adds Phil Schoggen. Well over 200,000 Tennesseans currently pay the state Hall income tax. “Our plan all along has been to repeal that tax, and replace it with a less discriminatory income tax that applies to all types of income.”



      Dick Williams, another TFT Board member, points out, “With an economic crisis of this magnitude, we can’t afford to let myths stand in our way. The reality is, you can increase taxes in a recession, and it has been done with successful results many times. There is wide agreement among economists that recessions as deep as the current one do not end without significant economic stimulation from government.”



      “There are only two ways to fund this kind of economic stimulus, borrowing or tax increases,” adds Williams. “Since borrowing is not an option for states, this is a great time to add some long-overdue fairness to our tax system with a progressive package for tax modernization.” The reason progressive taxes work in a recession is that the additional taxes on the top end will reduce the savings of higher income families, but have little effect on their spending. It is spending (both government and private) that will restore the demand for goods and services to a level that will again support a widely shared prosperity.



      See “Budget Cuts or Tax Increases at The State Level: Which is Preferable During a Recession?” by Nicholas Johnson, Center of Budget and Policy Priorities, available at http://www.cbpp.org/1-8-08sfp.htm



      Under the proposal supported by TFT, 60% of Tennesseans, including low- and middle-income families hardest hit by the current economic downturn, would actually pay less taxes. Brian Zralek, of MANNA, an anti-hunger advocacy group in Nashville, says, “The reality is that the sales tax on food, third highest in the nation, prevents people from saving for education or home ownership and working their way out of poverty.”



      Brian Paddock of Jackson County adds, “The reality is that budget cuts will make the recession deeper and longer in Tennessee. The Federal stimulus has helped to diminish the cuts, but if Tennessee is to position itself to prosper again after the recession, we need a Tennessee stimulus to avoid the remaining cuts and allow spending on more ‘shovel-ready’ projects and other stimulative undertakings.”



      See “Fifty Herbert Hoovers,” by Paul Krugman for more at http://www.nytimes.com/2008/12/29/opinion/29krugman.html?_r=1



      “Tax modernization is a triple-whammy for stimulating our state’s economy,” notes Stewart. “Reducing taxes for the bottom 60% of income earners will increase consumer spending. Asking the wealthiest families to pay their fair share will likely reduce savings, but will have little impact on their spending. And finally, raising one billion dollars in state revenue will both avert damaging budget cuts while also injecting public dollars into our communities. It’s a win-win-win proposal.”



      TFT is supporting the Tax Modernization and Economic Stimulus Act (SB2054/HB 2182), that would completely repeal both the state and local food tax, reduce the sales tax on all other items by nearly a third, repeal the Hall income tax, and enact a broad-based, progressive state income tax. While lowering taxes for low- and middle-income families, including over 60% of Tennesseans, it will raise $1 billion in funding to avoid budget cuts and invest in Tennessee communities to help jump-start the state economy.



      A summary of Tax Modernization and Economic Stimulus Act, supported by TFT, can be found at http://www.fairtaxation.org/reform/overviewofplan.php
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