Tennesseans for Fair Taxation BloggerFacebookYoutubeTwitter
TN Skyline

TFT Archives

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Email Alerts
Twitter
YouTube YouTube
MySpace Community Shares

About the Cole Reform Plan

The Cole Reform Plan is the compromise plan developed and presented by Rep. Ronnie Cole (D - Dyersburg).

Although TFT continues to push for passage of the Rochelle-Head Plan, TFT supports the Cole Reform Plan as a well thought out compromise that embodies the core values of Tennesseans for Fair Taxation.

bar

Key Aspects of the Cole Reform Plan based on information available as of 6/26/01:
  • It eliminates the state and local food tax entirely.
  • It eliminates the state and local tax on clothing and non-prescription drugs.
  • It replaces the current local and state sales tax with a lower total combined state sales tax of 7%.
  • It eliminates the Hall Tax.
  • It establishes a graduated personal income tax with generous personal deductions.

Real tax reform is about fixing Tennessee’s unfair, outdated, and fiscally unsound tax system for the betterment of Tennessee and all who live here.

bar

How the two-tiered income tax will work:

For a single person with no dependents:
  • 0% on the first $18,000 of income.4% on the next $17,000 of income.
  • 5% on all income over $35,000.

For a head of household filer:

  • 0% on the first $26,400 of income.4% on the next $25,050 of income.
  • 5% on all income over $51,450.

Married couples with or without children / dependents:

  • 0% on the first $36,000 of income.4% on the next $34,000 of income.
  • 5% on all income over $70,000.

Additional Exemptions:

$2,500 - Additional deductions per dependent.

bar Other charactoristics not accounted for on the Tax Reform Calculator at this time:

  • The professional priveledge tax can be used as a credit against income tax.
  • Capitol gains income is treated differently under the Cole Reform Plan than under the Rochelle-Head Plan.
Please consult an accountant if you have significant capitol gains income or if you pay the professional priveledge tax.

bar
Tax reform is about creating a more equitable and fiscally sound tax system that meets the state’s financial needs.

 

Tennesseans for Fair Taxation | Copyright 2012 | All rights reserved