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June 4, 2007 – For immediate release...

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  • Bill Howell, 615-289-1397 (cell)

Over 120 supporters of Tax Swap greet legislators at State Capitol

At the State Capitol today (Monday), over 120 supporters of the Tax Swap gathered to let their voice be heard. Knowing that the House of Representatives would go into session at noon to resume debate of the cigarette tax increase and food tax cut, supporters of the swap lined the walls of the Legislative Plaza beginning at 11:30 holding signs and wearing brightly-colored stickers reading "Fair Taxes NOT Food Taxes." The crowd of supporters stretched along both walls from the cafeteria of the Legislative Plaza to the escalator going up to the State Capitol, where legislators going into session would have to pass and see them and the food tax message on their way into session.

In a jubilant mood, supporters cheered sponsors of the Tax Swap as they made their way down the hall to go into session and encouraged those who have not yet signed on as sponsors to support the common-sense measure. "We gave out lots of handouts to legislators," states Phil Schoggen who joined many others for the strong show of support, adding, "The fact that we could turn out such a large crowd with only three days notice shows how much people care about this issue."

Tennessee currently has the highest state and local food tax in the nation with an average combined rate of 8.35%. "That's just morally offensive," states Schoggen. "Nobody but Tennessee taxes food at such an exorbitant rate... Heck, most states don't tax food at all, much less at such a high rate." Supporters of a permanent food tax cut note that at 8.35%, Tennessee's food tax takes a full month's worth of groceries off the table of every Tennessee family each year. Schoggen adds, "If you spend $400 a month on groceries, then you pay $400 a year in food taxes. If you spend $600 a month on groceries, then you pay $600 a year in food taxes. It's that simple... and it's that wrong."

Advocates of the Tax Swap, including Tennesseans for Fair Taxation (TFT), have been supporting the Food Tax - Cigarette Tax Swap (SB93/HB114) that would cut the state food tax in half, paid for with a 44-cent increase in the state cigarette tax. "We're willing to find a middle ground with the Governor and legislative leaders on a bill that also funds the Governor's education initiatives," states Schoggen of TFT, "but we're not willing to go home without a permanent, across-the-board cut in the state's high food tax. That's our line in the sand."

House leaders have agreed to include a small cut in the state food tax, from 6 to 5.5%, as part of the 40 cent cigarette tax increase likely to be voted on today. "While we'd like to see more, this is a good first step," adds Schoggen. "We're going to continue over the coming week or two to fight for as big a food tax cut as we can win... not a holiday either, but a real, permanent cut that applies to all food, all the time."

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