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January 18, 2007

Campfield: Tax Porn To Cut Sales Tax on Food

tnflag.jpgState Rep. Stacey Campfield is making an interesting proposal: tax pornography and sexually-oriented businesses - like vice taxes on cigarettes and alcohol - and use the revenue to eliminate the state's sales tax on food. Gov. Bredesen is dismissive of the idea - and jokes that he would also like to tax people who criticize him. The Knoxville News Sentinel has a good story on Campfield's intriguing idea, though actually I'd prefer the sales tax on food was eliminated via fiscal responsibility rather than creating a new tax to "pay" for it.

The truth is the state legislature and governors of both parties routinely spend more tax dollars each year than the state constitution permits, by using a loophole in the constitution's spending growth cap. And almost every year there is extra revenue above what is necessary to balance even those bloated budgets, but that money too is routinely spent.

The right way to eliminate the sales tax on food is to fix the loophole, force the legislature and governor to adhere strictly to the spending growth cap, and dedicate all future surplus revenue to be split between two things: increasing the state's reserve funds, as a hedge against calls for tax increases during future economic slumps, and lowering the sales tax on food to zero.

Update: Campfield has more about the proposal on his blog, thus demonstrating the value of a legislator having a blog. That value is this: the legislator need no longer rely on the mainstream media to "get it right," when they write about the legislators' positions and proposals. Instead, they can provide via their blog much more information, context, detail - and counter-arguments if necessary - after the mainstream media story is published. Why more politicians don't have and use blogs is a mystery to me.

Also, Tennessean government editor Jennifer Peebles, a contributor to the paper's not-lousy new political blog The Plaza, has a look at the porn tax proposal and the state of taxation of the seven deadly sins in Tennessee.


Comments

That idea is sort of good, but instead of taxing "porn", instead legalize prostitution, set up a red light district, and then tax the prostitution. ditto with Marijuana.

Posted by: Sean Braisted at January 18, 2007 8:37 AM

Sean,
Once again we are thinking almost exactly the same way.
Before I saw your post, I wrote the same thing about pot.

I've been to the promise land (Amsterdam) and what you suggested works for everyone.

Posted by: Sharon Cobb at January 18, 2007 9:39 AM

I have a better idea. Instead of a new tax, why don't we cut old spending! Why don't we work to reduce fraud, waste and abuse in government. Then we won't need ANY type of new tax.

Posted by: elvis at January 18, 2007 10:31 AM

Let's not forget a virtue tax. The State recognizes federal nonprofit tax status without any review. What if every house of worship community had to prove they were returning back to the social safety net more than they are exempted by their no tax status? Or another "vice" -- what if we acknowledge that southern sports mania is really about the untaxed gambling behind it ( when will college players get a cut of the TV revenues? why isn't there a college players' union? )

Posted by: Ed Dodds at January 19, 2007 7:05 AM
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