TFT Helps Defeat Utilities Tax
Tax Reform Emerging as the Most Popular Revenue Option.
In early June, TFT worked successfully to defeat efforts to reinstate
the residential utilities tax. Members sent a clear message to both media and
legislators that reinstating the utilities tax is simply the wrong way to go.
Members contacted their legislators by phone, mail, and face to face meetings
to let their voice be heard. Although the utilities tax passed the House in
what seemed to be an overnight, back room deal, it died shortly afterwards when
the Senate would not support it.
"Taxing residential utilities is just about as bad as the
current practice of taxing food in Tennessee. It raises basic costs of survival
for every household in the state, regardless of income level," said John
Stewart of Knoxville, a TFT board member. "This tax was repealed in 1985
for good reason. It’s unfair!" continued Stewart, "It would have
been a big step backwards to reinstitute it."
"Tennessee’s continued reliance on consumption taxes,
whether it is the food tax, sales tax, utilities tax, or the so-called "sin"
tax, forces an unfair burden on low- and middle-income families," said
Stewart. "Until we change the way Tennessee raises taxes, most of us will
continue to pay an unfair share while a handful at the top get away paying a
fraction of what the rest of us pay."
TFT was also critical of the many cuts in services which were
proposed, affecting people and state institutions, including our schools, universities,
parks, prisons, and juvenile justice system.
In late June, TFT members mobilized opposition to the attempted
increase in the sales tax rate. After Rep. Zane Whitson made his speech supporting
the increase, the bill died with over 90 of the 99 State Representatives voting
against the sales tax increase.
Both the sales tax increase and the residential utilities tax
would have been a step backwards. Public awareness of this fact is growing as
tax reform begins to emerge as the most politically viable option. Polls show
that while 56-62% of the public is opposed to tax reform which includes a state
income tax, a startling 70-81% are opposed to increasing the sales tax rate.
With the utilities tax, wheel tax, and tax on personal services facing similarly
overwhelming opposition in the 80% range, tax reform is emerging as the most
popular revenue option available.
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