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TN Tax Group: Need for State Tax Revenue Increase Undeniable

March 9, 2009

Nashville, TN – A Tennessee group says the state's tax code is full of loopholes. Closing those loopholes is the goal of four of five tax bills under consideration in the State Legislature.

The need for more tax revenue is undeniable, according to Tennesseans for Fair Taxation state chair, John Stewart.

"The question's not whether there's going to be a tax increase, but what kind of an increase is it going to be."

Four of the bills would close loopholes enjoyed by multi-state corporations, family-owned corporations, out-of-state mail-order houses, Internet marketers and in-state firms including private investigators and limousine services. The fifth bill would address the state sales tax rate, eliminate the sales tax on food and clothing and create a state income tax. Stewart says all five bills deserve serious consideration by the public.

"Tennesseans will be well served and better served by these bills."

Opponents of tax increases or new taxes say the government needs to tighten its belt, not put an increased burden on taxpayers. The state income tax proposal is expected to generate the most opposition. Polls show state voters are equally divided on the issue; in the past, similar bills have prompted large and noisy demonstrations at the State Capitol in Nashville.

All five tax bills are explained at www.fairtaxation.org.




Dan Gordon, Public News Service - TN