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It will lower taxes
for 80% of Tennesseans!
Tax reform will help address the gross inequities in Tennessee’s tax system
and create a more level playing field for everyone. In the end, most
Tennesseans will pay less.
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It will eliminate sales
tax on food & non-prescription drugs.
Tennessee remains one of a handful of states that still taxes food at the
full rate. The tax on food unfairly burdens those who are struggling
to make ends meet.
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It will save $330+ million now being
sent to Washington.
Even with the newly approved sales tax deduction, the federal tax savings
of $250 mill. falls far short of the $580 mill. that could be saved by
deducting a state income tax. That's because the sales tax falls primarily
on those least likely to itemize and realize any federal savings.
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It will raise $660 million
in much needed revenue.
Last year, state programs across the board were cut by 9% with even more
cuts likely in 2004. This is happening despite the fact that Tennessee
already ranks near the bottom nationally in everything from education
to the environment.
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It will reduce the export
of Tennessee shopping dollars.
By eliminating the food tax and lowering the sales tax, Tennessee can reduce
the incentive for shoppers to leave the state, whether by car, phone, or on-line.
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It will establish a
more fiscally sound tax system.
By establishing an income tax that is more responsive to economic growth,
revenue will grow with the economy and reduce the need to raise the tax rate
every other year.
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