Legislature Ends, Cutting Sales Tax By Half Cent

[CMF Newsman]

The Tennessee General Assembly came to a close on Tuesday after legislators cut the sales tax on food by a half cent.

Proponents said it would save taxpayers $41 million per year.

BEP 2.0. Education reforms initiated by Gov. Phil Bredesen will send over $500 million in new state funding to local education authorities and institute new accountability measures for LEA’s and for Tennessee’s education colleges.

The state will now assume 75 percent of the costs of education. The changes are funded by a 40-cent-per-pack increase in Tennessee’s cigarette tax. Another two-cent rise will go to trauma centers like Erlanger Medical Center.

www.chattanoogan.com/articles/article_108772.asp

[daworm]

The op-ed piece in the TFP about this made me mad.

Two paragraphs, back to back, in particular. In the first, they give the old saw about how sales tax, especially on groceries, is a recessive tax because poor people pay a much higher percentage of their total income on food than do rich people. It is stated in such a way as to make you think "Oooh, how horrible!".

Then, they first sentence of the next paragraph says something along the lines of "This is obviously unfair!". Excuse me? But then it gets better, by claiming that what is truly fair is an state income tax where the more money you make, the bigger share you should have to pay. (Sound familiar?) Tell me something, how is it "fair" that someone who makes $20K a year pays, oh, lets say 15% of his salary in taxes, and someone who makes $100K a year pays 30%? What part of that sounds "fair"?

[traveler]

DaWorm, it is the same old worn out argument that the editorial writers of the Chattanooga Times have used for decades.

When the economy is weak and revenues are low, they use the argument that an income tax is somehow better for state revenues. When the economy is strong, they use the argument of fairness. Both arguments are patently absurd but....just consider the source.

[kroisis]

[Deleted]

and for those who don't know how, I give smoking lessons. for the kids.

[RuneDeer]

Sales tax on food is wrong, period.

[visionquest]

runedeer said:

Sales tax on food is wrong, period.

Many states did away with sales tax on food decades ago.
TN always a decade or two behind.