The below excerpt is from Raul Lopez writing for The Tennessean…
Here’s the most significant thing you need to know about the Tennessee legislature’s decision to repeal the Hall Income Tax: More than half of the people who are paying this punitive tax make less than $75,000 a year. In other words, it’s not just the rich. This matters because now that the bill to repeal a 6 percent tax on income derived from stocks and bonds is heading to the governor’s desk for consideration, it is absolutely important that we remember that those paying for the Hall Tax include retirees, hardworking families and budding entrepreneurs who all call the Volunteer State home.
Thanks to the leadership of Sen. Mark Green (R-Clarksville) and Rep. Charles Sargent (R- Franklin), the Tennessee legislature took an important step to reduce the tax burden on Tennessee taxpayers. What’s more, as the final vote tally made clear, there is overwhelming bipartisan support to repeal a tax that, among many things, punishes savings and investing. And along the way, supporters wanting to eliminate the Hall Tax cleared up misconceptions and misinformation about taxes and the best way to collect revenue.
As the executive director of Latinos for Tennessee, a nonprofit committed to promoting fiscal responsibility to the Latino community, I was particularly grateful for groups like the Beacon Center of Tennessee that provided an important service in educating Tennessee lawmakers and their staff on why repealing the Hall Tax is absolutely vital in order to ensure that our state remains competitive and attracts more high-paying jobs. Many of our members are immigrants,or the sons and daughters of immigrants, who fled countries with incredible rates of taxation that drove businesses into the ground.
Among the biggest misconceptions out there is the idea that the revenue raised by the Hall Tax makes up a significant chunk of the state’s budget. This is an important question and one worthy of consideration. But as the good folks at the Beacon Centerpointed out, the revenue raised by the Hall Tax makes up less than 1 percent of the total state budget.
Even so, the language of the final version of the bill will phase out the Hall Tax over a six-year period in order to ensure that there is a fiscally responsible transition from a system that has been in place since the days of Prohibition. This compromise reflects… read full article HERE.