Taxpayer Alert

 

From: Tennessee Tax Revolt, www.TntaxRevolt.org

Subject: MTSU Poll supposedly showing 60% support for income tax

Date: Thursday March 18, 2004

 

 

MTSU has released their we need an income tax survey. The survey shows that 80% of Tennesseans do not favor an income tax when asked the question in a simple straightforward way.  However, the survey is always presented to the news media as showing support for an income tax. The problem, of course, is that the income tax is only “popular” when you lie about the way it will be implemented.

 

The income tax is ALWAYS sold as revenue neutral. In other words proponents say, “just give us an income tax and we will reduce other taxes and state revenues will grow with the economy.” The table below shows this to be the great lie. The income tax is always sold at one rate and then implemented a higher rate. EVERY state that has implemented an income tax since 1967 now charges a higher rate.

 

For those groups that live off the taxpayers hard earned money, the income tax is simply another way to get more money from the only source they have available, the taxpayers. This is easily demonstrated by looking at those groups that have supported the income tax for the last 20 years.

 

Who supports the income tax? 1- Big corporate vendors that make money from TennCare and other state programs, 2- public employee union bosses, 3- state agencies, and 4- city and county bureaucrats who see state money as “free” money in the same way that state bureaucrats see federal money as “free.”

 

A recent article in the Memphis Flyer newspaper was titled, How taxpayer-funded public relations are shaping the news (See link below for complete article). This survey is an extraordinarily good example of this trend. The taxpayers are funding pro-income tax propaganda, plain and simple.

 

While MTSU is pumping out taxpayer funded pro-income tax propaganda, the new Kentucky Governor is reducing the income tax in Kentucky so “we can compete with Tennessee” and the new Governor of South Carolina is trying to eliminate the state income tax altogether. The income tax punishes savings and investment and reduces JOB GROWTH.

 

 

We propose the following to gauge how Tennesseans truly feel about a state income tax:

 

1- Have all the candidates running for the Tennessee General Assembly endorse the income tax.

 

2- Instead of the questions asked by MTSU, ask this question: “Would you favor a state income tax which will significantly increase your tax burden and ruin the competitive advantage that Tennessee holds over surrounding states?”

 

 

 

Here is the bottom line: An income tax would be a disaster for the Tennessee economy and Tennessee taxpayers.

 

 

 

 

 

 

 

Table 1: States that have implemented an income tax since 1967

 

 

State

Year

Enacted

Initial Rate

Current Rate

Tax Rank

Connecticut

1991

1.50%

3.0-5%

3

New Jersey

1976

2.0-2.5%

1.4-6.37%

12

Rhode Island

1971

15% of Fed

25% of Fed

15

Pennsylvania

1971

2.30%

3.07%

23

Ohio

1971

0.5-3.5%

0.743-7.5%

26

Illinois

1969

2.50%

3.00%

24

Maine

1969

1.0-6.0%

2.0-8.5%

14

Michigan

1967

2.90%

4.10%

10

Nebraska

1967

10% of Fed

2.56-6.84%

30

Tennessee

 

 

 

48

 

 

Source for Current Income tax rates:

http://www.taxadmin.org/fta/rate/ind_inc.html

 

Source for Per Capita State Tax Burden Ranking

http://www.census.gov/govs/statetax/02staxrank.html

 

Memphis Flyer Article: How taxpayer-funded public relations are shaping the news

http://www.memphisflyer.com/content.asp?ID=5605&ArticleID=2

 

MTSU Survey Press Release

http://www.mtsusurveygroup.org/mtpoll/s2004/Tax%20analysis%20-%2020040315_204pm.htm