Corker seeks inclusion of ‘backstop’ in Senate tax overhaul; otherwise ‘very possible’ he’ll vote no
U.S. Senate Republican leaders are considering last-minute changes in federal tax overhaul legislation, including a provision pushed by Tennessee’s Bob Corker that could eliminate some tax cuts if the new law winds up adding more to the federal deficit than projected, reports Politico.
Two critical Republican swing votes, Ron Johnson of Wisconsin and Bob Corker of Tennessee, on Monday left open the possibility that they could vote against the tax plan in a key committee vote scheduled for Tuesday if changes weren’t made to their liking. That would tank the bill before it could reach the floor, putting more pressure on leadership to quickly make revisions.
…A handful of deficit hawks — including Corker and Sens. Jeff Flake of Arizona and James Lankford of Oklahoma — are discussing a trigger mechanism that would kick in and potentially change tax rates if the economic growth needed to defray the cost of the tax overhaul doesn’t materialize.
Black, Harwell and Fitzhugh release income tax info; other gubernatorial candidates refuse
Four of the seven major candidates for Tennessee governor have turned down a Tennessean request to make public details of their federal income tax returns.
U.S. Rep. Diane Black and fellow Republican state House Speaker Beth Harwell provided financial summaries. Of the other Republican candidates Mae Beavers, Randy Boyd and Bill Lee declined – though Boyd indicated he may reconsider in the future.
On the Democrat side, House Minority Leader Craig Fitzhugh released a copy of his 2016 return and former Nashville Mayor Karl Dean declined the request, though indicating he may reconsider later.
Poll finds Tennesseans skeptical of Senate Republican tax plan
Excerpt from a Hart Research Associates polling memo on a Nov. 17-9, 2017 survey of 400 registered voters in Tennessee, with a margin of error of ±five percentage points, asking their sentiments on the tax plan now pending in the U.S. Senate. It was apparently commissioned by Americans for Fair Taxation, a non-profit organization of multiple groups – including labor unions and others generally oriented toward Democrats.
-Just 30% of Tennessee voters currently approve of the Republican tax plan, while nearly half (47%) disapprove. Significantly, strong sentiment on the issue is even more lopsided, with more than twice as many voters strongly disapproving (28%) as strongly approving (13%).
State’s October tax revenue $1.3M under budget estimate
Press release from Department of Finance and Administration
NASHVILLE, Tenn. – Tennessee revenues for October exceeded revenues from the same month a year ago, but were marginally less than the budgeted estimate. Finance and Administration Commissioner Larry Martin reported today that October revenues were $1.0 billion, which is $31.1 million more than October of last year and $1.3 million less than the budgeted estimate. The growth rate for October was 3.16%.
Doss gets a challenger in House District 70 GOP primary
Clay Doggett, a Pulaski businessman, has announced he will seek the Republican nomination in House District 70, now held by incumbent Republican Rep. Barry Doss of Leoma, the House Transportation Committee chairman who gained some statewide attention last session as House sponsor of Gov. Bill Haslam’s IMPROVE Act, including an increase in fuel taxes.
Here’s Doggett’s press release:
$2.5B in annual TN business subsidies, outcomes often unknown
Tennessee state and local governments provide more than $2.5 billion in subsidies such as grants, tax breaks and tax credits to businesses each year, but there’s often little public information provided on whether the taxpayer money is working to produce promised jobs.
That’s the bottom line of reporting by the state’s four largest newspapers — The Tennessean, The Commercial Appeal, Knoxville News Sentinel and (Chattanooga) Times Free Press — published this weekend.
Wheel tax referendum fell short on valid signatures in Hawkins County
A petition drive seeking a special election to consider repeal a recent $40-per-vehicle increase in the Hawkins County wheel tax fell 127 signatures short of the number required, according to the Rogersville Review. Indeed, county Election Administrator Donna Sharp says there were more invalid signatures than valid. Advocates needed 1,095 valid signatures.
‘Bah, humbug!’ on sales tax holidays (from the Tax Foundation — and, kinda, UT’s Bill Fox in an update)
(Note: If you’ve looked at TV news, listened to the radio or read any newspaper in Tennessee the past few days or so, you will have seen reports on the “tax holiday” — no sales tax on designated purchases — this weekend. The statewide USA Today Network – Tennessee version is HERE. On the other hand, there’s this.)
News release from The Tax Foundation
Washington, DC (July 25, 2017) – Sales tax holidays represent poor tax policy, costing states revenue while providing little benefit, according to a new Tax Foundation report.
More policymakers are recognizing this less-than-desirable tradeoff; Tennessee is one of only 16 states to use sales tax holidays for 2017, down from a peak of 19 states in 2010. Tennessee will offer a back-to-school sales tax holiday July 28-30.
- Sales tax holidays create additional tax compliance costs, but larger businesses tend to lobby for the holidays as a form of free advertising.
- Most sales tax holidays involve politicians picking products and industries to favor with exemptions, arbitrarily discriminating among products and across time, and distorting consumer decisions.
- While sales taxes are somewhat regressive, this does not make sales tax holidays an effective tool for providing relief to low-income individuals. In order to give a small amount of tax savings to those with lower incomes, holidays give a large amount of savings to higher-income groups as well.
- Political gimmicks like sales tax holidays distract policymakers and taxpayers from genuine, permanent tax relief. If a state must offer a “holiday” from its tax system, it is an implicit recognition that the state’s tax system is uncompetitive. If policymakers want to save money for consumers, then they should cut the sales tax rate year-round.
UPDATE: From a USA Today story, citing the posted news release:
Some critics contend that consumers might save even more without the holidays, as retailers would mount sales of their own timed to events such as back-to-school.
Bill Fox, director of the Boyd Center for Business and Economic Research at the University of Tennessee, said he took advantage of Tennessee’s recent holiday to buy several pairs of running shoes. “That 9 ¼ percent I saved is minuscule in terms of ‘savings,’ ” he said. “The stores would be giving a much better discount if they had a sale. Back-to-school sales would have been like 25 percent off, not 9 percent, and people would have saved more.”
Petitions filed to hold vote on Hawkins County wheel tax increase
Petitions were submitted Monday calling for a referendum on whether a $40-per-vehicle wheel tax approved by the Hawkins County Commission will stand, reports the Rogersville Review.
The Commission had rejected the increase in a initial vote earlier this year, but then approved it after Jason Mumpower, deputy state comptroller, warned the officials that failure to enact a balanced county budget by July 1 would mean a state takeover of county finances.
Hawkins County Elections Administrator Donna Sharp says that, if the petitions contain enough valid signatures, a special election will be scheduled within 90 days at a cost of $70,000 or so.
June TN tax collections: $112M over budget estimates
News release from Department of Finance and Administration
NASHVILLE, Tenn. – Total tax revenues for June were above budgeted expectations. Finance and Administration Commissioner Larry Martin announced today that overall Tennessee tax revenues in June, led by strong growth in franchise and excise (F&E) taxes, were $1.4 billion, which is $112.1 million more than the state budgeted.
“While we are encouraged by the positive revenue numbers, we need to be mindful of two important points,” Martin said. “First, the Funding Board in November 2016 revised upward for the fiscal year 2017 budget the anticipated positive variance for overall Tennessee taxes. As a result, $663.3 million of the fiscal year 2017 unaudited year to date positive variance of $731.3 million general fund revenue is already included in the fiscal year 2018 budget. Secondly, F&E tax payments by businesses are estimates of their tax liability and are subject to change.”
