I was shocked when reviewing the current state budget to support an earlier point I made on the income tax. This thing is a slick package they've created to exaggerate the role of the sales tax in our State Budget.

Their pretty little pie charts border on down-right deception and illustrate that their quest for an income tax is far from over. By omitting the federal dollars from the pie they paint the picture of a regressive tax that is an attack against the poor.

In truth the federal portion (that is funded by our highly progressive marginal federal income tax) dwarfs our sales tax collections. When you add in the franchise and excise taxes paid by small-business owners it turns our that only a small part of the state budget is covered by their 'regressive' sales tax.

It is Tennessee's 'big lie'.

The truth is that they want the income tax so that a minority of voters will be paying the majority of taxes. That way there is no popular political resistance to tax increases. If it passes look for the budget to double in less than 5 years because there will no longer be a popular majority that suffers the consequence of the increase.

Thay know this and this is why they are frothing at the mouth to get it passed.

Please look at the budget. Those pie charts say nothing if not that there will soon be another push for an income tax.

Posted by: Jimmy at July 3, 2008 1:30 PM

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