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State Tax Loophole Closed

June 25, 2009

NASHVILLE, Tenn. - The state of Tennessee is missing out on millions in tax revenue, according to Tennesseans for Fair Taxation. The group worked during the just-completed legislative session to convince lawmakers that the state needs to find ways to collect more revenue.

Dick Williams, who serves on the Tennesseans for Fair Taxation board, says his organization is motivated by a single conviction.

"We believe that for years we have not faced the fact that we need more revenue for government services."

Tennesseans for Fair Taxation is seeking a state sales tax on Internet purchases, a reduction in the sales tax on food and a graduated state income tax that would lower the overall tax burden on low-income Tennesseans.

This year, a loophole was closed that gave a tax break to state companies with owners who are related.

"That's the victory we did get this year. The governor incorporated it into his regular budget."

Williams says Gov. Bredesen acted at the urging of Tennesseans for Fair Taxation.

Dan Gordon, Public News Service - TN