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April 27, 2007: For immediate release...
Contacts:
- John Stewart, TFT Board Member, 865-584-3834
- Fay Holcomb, MANNA & TFT, 615-506-2996
- Bill Howell, TFT's Nashville Office, 615-289-1397
Sales tax holiday – What about other 362 days?
Tennessee has the highest state and local sales tax in the
nation, as well as the nation's highest combined food tax.
This weekend however, shoppers across the state will get a
brief, three-day reprieve from Tennessee's high sales tax.
This weekend's temporary holiday is in addition to the permanent
3-day holiday that now takes place in August prior to the
school year. As shoppers across the state are taking advantage
of the holiday, one coalition is asking, "What about
the other 362 days of the year?"
While Tennesseans for Fair Taxation (TFT) does not oppose
the holiday, the group points out that since people are still
forced to pay the nation's highest sales tax for the other
362 days of the year, it does very little to impact people's
lives. At the same time, the holiday only applies to a limited
number of items like computers, schools supplies, and clothing.
"This may help families who can afford to stock up by
buying months of supplies at once, but most families receive
only limited benefit from such holidays," states TFT
Board member John Stewart.
"The sales tax holiday is nice, but legislators need
to take the next step and cut the sales tax all 365 days of
the year, starting with the most unjust part of the sales
tax, the high tax on food," adds Fay Holcomb referencing
current efforts to reduce the state sales tax on groceries.
Fay represents MANNA, a Nashville-based anti-hunger group,
on the TFT Board.
There are several proposals to cut the state food tax, but
the coalition prefers the Food Tax - Cigarette Tax Swap (SB93/HB114)
because the food tax reduction is permanent and across-the-board.
"The Tax Swap uses a modest increase in the state cigarette
tax to pay for a permanent, year-around cut in the state food
tax," states Dick Williams, TFT's volunteer legislative
liaison. "With the nation's highest average food tax
and one of the nation's lowest cigarette taxes, this bill
makes perfect sense. That's why legislators from both sides
of the aisle are continuing to sign onto the bill." The
Tax Swap has 21 legislative co-sponsors, including 11 Republicans
an 10 Democrats.
The Tax Swap as introduced, will cut the state food tax
in half from 6 to 3%, paid for with a 44 cent increase in
the cigarette tax. Governor Bredesen also has a bill to raise
the cigarette tax, but his uses the funds to make public investments
in education. The coalition argues that these are not competing
proposals. Williams clarifies, "Combining the two plans
will simply bring Tennessee up to the national average for
cigarette taxes, while making new public investments in education
and cutting the food tax. That's a winner all around"
Stewart concludes, "When shoppers start to line up
at the checkouts during this weekend's sales tax holiday,
we hope legislators and the Governor take it to the next level
and look at ways to cut the sales tax year-around... starting
with a permanent, across-the-board cut in the state food tax."
Tennesseans for Fair Taxation (TFT) is a statewide coalition
of more than 30 organizations, and hundreds of individuals,
working to create a more fair and balanced tax system that
invests in Tennessee, its communities, and its people. To
learn more about TFT and the Tax Swap campaign, visit www.fairtaxation.org
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