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Who's Fair? Who's Not?
By combining a much lower sales tax with a graduated income
tax, South Carolina is able to distribute the tax burden much more equitably.
Unlike in Tennessee, where those with the least financial means pay over three
times the effective tax rate as high income families, South Carolina distributes
the tax burden in a much more equitable fashion.
Sales Tax vs. Income Tax
- An income tax is fair. The sales tax, especially
the tax on food, tax low- and middle-income families more heavily by taxing
basic necessities. By taxing income instead of basic necessities, Tennessee
could tax everyone more equally at a much lower rate.
- An income tax will make us more competitive. Tennessee's
high sales tax encourages shoppers to cross state lines and buy their goods
elsewhere. By taxing income instead of sales, Tennessee could lower
its sales tax and keep shoppers in the state.
- An income tax is better suited to the current economy.
By taxing income instead of tangible goods, shifting to an income tax will
restructure the outdated tax system to apply to today's growing service-based
economy.
- An income tax is better suited for the age of technology.
By taxing income instead of sales, Tennessee can reduce the ability of some
to escape taxation through internet and catalog shopping. This will
create a more level playing field for everyone.
- An income tax will reduce the need for regular tax hikes.
As the economy grows, Tennessee's needs grow for improved schools, roads,
and competitive salaries. Unlike the sales tax, an income tax will grow
as incomes rise, reducing the need to raise the tax rate every other year.
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