May 30, 2007

"He Felt There Was Really No Need to Do the Tax Relief."

Gov Phil Bredesen is a wealthy man. A very wealthy man. His estimated net worth, amassed by running HMOs, is around $150 million. So he probably really didn't feel that there was any need to include a little tax relief in his proposed state budget this year, as David Goetz, Commissioner of Finance, said in today's Nashville City Paper

But the average Tennessean isn't worth $150 million, doesn't have a Belle Meade mansion and a beautiful vacation home in Wyoming. The average household in Tennessee gets by on about $30,000 a year, and spends a big chunk of their money putting groceries on the table. And Tennessee has the highest sales tax on food in the nation.

Yet, with Tennessee state government drowning in surplus tax revenue - an estimated $1.5 billion this year alone - Gov. Bredesen "felt there really was no need" to set aside $78 million of the surplus to knock one cent off the food sales tax. He "felt there really was no need" to reduce the regressive sales tax on food, which hits the poor and the middle class the hardest.

But he apparently did feel there was a need to start taxing the sale of propane for gas barbecue grills, so that the average Tennessean grilling their burgers this summer will not only pay the same highest-in-the-nation sales tax rate on their food, now they'll pay even more taxes just so they can grill them outside.

Super-wealthy people like Bredesen often have their outdoor gas grills connected to large installed tanks, the fuel in which will continue to be exempt from taxation even as those small propane tanks you pick up at Kroger or Home Depot will become subject to taxation.

Not that Bredesen would feel the need to have his taxes lowered - he's got his $150 million. And the state has ten times that much in surplus revenue.

You say you don't have $150 million? That's not Bredesen's fault. So he doesn't feel the need to cut your taxes a bit. Instead, he's working overtime to take a little more of what little money you do have.

Click "continue reading" for the latest press release from the House Republican Caucus, which is putting the Senate Republicans to shame by standing up against Bredesen's pork-and-tax-increases budget.

Here is the House Republican Caucus statement today regarding Bredesen's behemoth budget proposal and its failure to include tax relief:

NASHVILLE - In a year of all-time record state revenues, Governor Phil Bredesen continues to refuse to provide tax relief to Tennesseans. With the state having over-collected $1.5 billion worth of new revenue for next year, House Republican leaders say it is irresponsible not to give money back to the taxpayers.

"It's time to give Tennessee taxpayers a break," said Republican Caucus Chairman Glen Casada (R-Franklin). "We have taken too much money, more than we need, from the taxpayers of Tennessee, and it is time to give it back."

Governor Bredesen's recommended budget for next year grows the state budget by $1.5 billion over this year. It funds a massive expansion of state government while raising millions in new taxes on everything from cigarettes to propane without rolling back any existing taxes. It spends over $50,000 per minute, more than the average hard-working Tennessee family earns in a year, Casada notes.

"If the governor has his way, by the Fourth of July Tennesseans will be paying new taxes for their family cookouts," Casada said.

The House Republicans have introduced a "No-tax, No-pork" budget that cuts the sales tax on food and fully funds educational improvements at the same rate as the governor, proving that it is possible to fully fund priorities and not increase taxes. The conservative budget also restores money to the highway fund and puts money into the rainy day fund. It will put money back in the pockets of every Tennessean.

"State government must live within our means just like every citizen does. The governor's proposal grows the budget at an unsustainable rate. If we don't live within our means, the budget will drive us to new tax increases in the future. We don't have a revenue problem, we have a spending problem," Casada said.

Tennessee has the highest food sales tax in the nation. The House of Representatives is considering the governor's tax and budget proposals this week.Bredesen didn't "feel the need" to cut taxes for ordinary Tennesseans. Perhaps Bredesen is just out-of-touch with average Tennesseans who don't live near him in Belle Meade. He needs to get out more often.

Posted in Tennessee Government News

Comments

If Phil is looking for something to do with his moolah, I could use some for feral-cat rescue in Maury County. Very serious problem in a world of serious problems.

Posted by: Donna Locke at May 30, 2007 8:23 PM

Did you see this story from the Tennessean: link. It appears that healthy food is taxed at a higher rate, which obviously helps the health care industry.

Posted by: Josh at May 30, 2007 10:17 PM

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