Bredesen’s Revenue Commissioner to Reveal Next Targets for Tax Increases

NASHVILLE - Last year it was cigarettes and backyard barbecues. This year, there’s no telling what the Tennessee Gov. Phil Bredesen will target for new taxes - but taxpayers may get a hint when Gov. Phil Bredesen’s Commission of Revenue, Reagan Farr, goes before the a joint committee on taxes tomorrow (Dec. 5) at Legislative Plaza to present the administration’s position on “Tax loopholes which need to be addressed.”

Last year, the Bredesen administration demanded a $240 million cigarette tax increase and fought against Republican efforts to reduce Tennessee’s high sales tax on food – while also pushing through a new tax on propane for backyard barbecue grills that cost Tennessean’s some $3 million over the summer’s prime-time outdoor grilling season. Those tax hikes came at a time when the state was awash in more than $1 billion of surplus revenue.

“Now that Bredesen has spent too much and created a new ‘revenue shortfall,’ taxpayers have good reason to worry that more tax hikes may be on the way,” said Bill Hobbs, communications director for the Tennessee Republican Party.

Tennessee’s taxpayers – individuals and businesses – currently save $6.43 billion in taxes every year because of exemptions built into the state’s tax code.

“Taxpayers should pay attention tomorrow as the head of Tennessee’s version of the Internal Revenue Service reveals which tax exemptions the Bredesen administration would like to eliminate,” Hobbs said.

“They could extend the sales tax to employment services, construction services, or even funeral services,” Hobbs said. “They might try to tax your cable television service, tax your hair cuts, tax your health care, tax your membership at the local gym, your your prescription glasses and tax your dental care.

“Frankly, Bredesen’s tax-raisers have plenty of targets – and no billion-dollar surplus this time to give him a reason not to increase the raid on your wallet.”

Media Note: List of state’s current tax exemptions attached. List can also be viewed here.

# # # TNGOP December 4, 2007

Contact:
Bill Hobbs
Communications Director
Tennessee Republican Party
2424 21st Avenue, Suite 200
Nashville, TN 37212
billhobbs@tngop.org