Assuming this measure becomes law, we'll be able to watch Tennessee become a mecca for business relocation almost overnight.
Tennessee moves to constitutionally ban state income/payroll taxNASHVILLE, Tenn. — The Senate sponsor of a measure to amend the Tennessee Constitution to ban an income tax says the proposal will attract more businesses to Tennessee, even though opponents say it could hurt the state down the road.
The legislation sponsored by Republican Sen. Brian Kelsey of Germantown was approved 28-5 in the Republican-controlled Senate on Wednesday and is expected to have little trouble passing in the House, which is also dominated by the GOP.
"I think we have a lot more support in the House," Kelsey said after the vote.
The proposal, which would go on the ballot in 2014, would prohibit the state Legislature and counties and cities from passing either an income tax or a payroll tax.
Kelsey said such legislation should be attractive to businesses because of the "tough economic times."
"This is going to help us bring in jobs to Tennessee," he said. "We can say not only do we not have an income tax, but we'll never have an income tax."
Republican Sen. Rusty Crowe of Johnson City agreed the legislation is necessary for assurance.
"It's not always going to be upheld," said Crowe, referring to past attempts to pass an income tax in Tennessee.
However, Democratic Sen. Beverly Marrero of Memphis said the proposal could tie the hands of future state lawmakers who may want to take a different approach in dealing with the state's budget situation.
"I think it is bad ... for Tennessee," she said.
Other senators voting against the proposal were: Democrats Ophelia Ford and Reginald Tate, both of Memphis; and Thelma Harper and Douglas Henry, both of Nashville.
Jim Von Bramer, a member of Tennesseans for Fair Taxation, said in a news release that the legislation is irresponsible.
"Permanently blocking an income tax lets the wealthiest Tennesseans walk away from paying a fair share of state and local taxes forever while the rest of us pay much more of our income on food taxes and the basic necessities we buy from our local retailers," he said. "Our state budget gap will likely only grow as the federal budget shrinks. We are headed into a dark place, and now the state Senate says we should throw away our flashlight."