Should we have an Income Tax in Tennessee? This article discusses the way our budget system works, and how a state income tax would not be needed. It goes into how the money in the state is accounted for and how the state government is using Tenncare as a "whipping boy". It gives a breakdown of how much is being used by what part of the government. It also shows that currently we do not need a state income tax but our government needs to change its spending habits. The article gives an analysis of the state's spending. Money is often doubled counted inflating the budget and distorts the figures that the public really sees as factual data. Many people are already angry over the proposed new taxes being currently reviewed by the government, and that is what this article is stressing.
I believe that in order to properly pursue any course of action on a state income tax, you need to understand why one would be needed.
The current sales tax we have is a regressive tax. This means the poorest pay the most, let's say, the grocery store. But the sales tax makes up only a small percentage of the overall state budget. Homeowners and certain structured businesses make up much more by paying property and excise taxes each year. Until I read this article I had been for a state income tax, because I did not understand what the government does with all its revenues.
I feel that the government is trying to goad us into accepting taxes and governmental changes that we do not need. We (Tennesseans) cannot see everything that goes on inside the walls of our government, but we need to be able to make an informed decision. I think it is...