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October 4, 2005
The following statement was released to the media from TFT's
sister organization, the TFT Action Fund on 10/4/05.
Bredesen pledges 4 more years of the nation's highest food tax
Last week, Gov. Bredesen stated that he will not support a state
income tax if elected to a second term, committing in effect to maintain, and
possibly even increase, what is already the nation's highest food tax and the
highest average sales tax overall. The average sales tax in Tennessee is 9.4%
according to the Sales Tax Clearinghouse and Tennessee is one of the few states
that taxes basic necessities like food. While the governor has ruled out an
income tax, he has not ruled out an increase in the sales tax, which has been
increased by five consecutive Governors, nor has he ruled out raising the food
tax.
"Shutting the door to tax reform and repeal of the
food tax just guarantees that those living paycheck-to-paycheck will continue
to pay an unfair share of taxes while the state's wealthiest get off light,"
states Brian Paddock, chair of the Tennesseans for Fair Taxation Action Fund
(TFT Action Fund), referring to Tennessee's inequitable tax system where low-income
families pay over three-times the taxes as a portion of income than those at
the top according to the Institute on Taxation and Economic Policy.
"In addition to being unfair, relying on the high
sales tax is just bad policy in the age of the internet," says Paddock,
"with unfortunate and painful results." By ruling out tax reform,
the Governor is assuring that, if re-elected, voters can look forward to:
- 4 more years of double-digit tuition hikes at our state universities
- 4 more years of local tax increases as cities and counties
struggle to make up for the loss of state funds
- 4 more years of dismal graduation rates and underfunded schools
- 4 more years of people dying because of unnecessary heath
care cuts
- 4 more years of talk about a pre-K program with only token
funding to make it a reality
"With the cuts he's made in Worker's Compensation
and Tennessee's health care program, Bredesen stuck a sharp stick in the eye
of those who supported him in the past," states Dave McIlwaine with Jobs
with Justice of East Tennessee, referring to the Governor's falling job approval
among his own base. According to a recent SurveyUSA poll, an analysis of which
has been posted on various Democratic web sites, Gov. Bredesen is tied for 49th
nationally in "own-party job approval." Only one governor in the nation
has a lower job approval rating amongst his own party than Gov. Bredesen, and
that's Gov. Taft of Ohio who is facing a series of ethics violations. McIlwaine
adds, "Bredesen's commitment to do nothing about the state's high food
tax will only make matters worse for his base."
Bredesen is also alienating responsible business leaders of all
political stripes. During the 2002 debate, business groups from the Tennessee
Business Roundtable to various Chambers came out in support of tax reform to
strengthen our economy. "The world is changing," states retired apparel
manufacturing executive George Haley of Nashville, "The days when employers
wanted workers to sit at a machine and pull a lever are gone. We need people
that are creative... people with an education that can read, write, and process
math equations." Haley adds, "To do that we need to make long-overdue
investments in education, but we will never be able to make those investments
until we reform Tennessee's outdated tax system."
"With the sorry state of affairs today and support
for tax reform growing, the Governor's position makes no sense," states
Chris Daly of Chattanooga, a Board member of the TFT Action Fund. According
to the Survey Group at MTSU, support the kind of comprehensive tax reform Governor
Bredesen has ruled out jumped into the 60% range after the 2002 sales tax hike,
and has stayed there in every semi-annual poll conducted by the Survey Group
since then.
"We need leadership that can bring Tennessee into
the 21st Century, and we're just not getting it from Gov. Bredesen. Instead,
he seems intent on pandering to his political opponents, alienating his former
supporters, and short-changing the future of Tennessee," adds Paddock.
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