Tuesday, January 10, 2012
Legislature Governor Calls for Tax Cuts in 2012
Posted by Jeff Woods on Tue, Jan 10, 2012 at 3:07 PM
The cost to the state treasury for the food tax cut is $18 million annually. For the estate tax, it's $14 million.
Only a week or two ago, the governor was saying he wouldn't go for either idea. But Republicans are salivating at the prospect of running for reelection as tax-cutters, and Haslam said the state's improving budget picture made their dream come true.
The governor claimed cutting the estate tax—or the death tax, as Republicans love to call it—actually will result in increasing state revenue. That tax now is paid by roughly 850 estates in Tennessee.
"There's a whole lot of people who used to live in Tennessee who don't anymore because it's cheaper to die in Florida," Haslam said. "I can tell you a whole lot of people who spend less than half their year in Tennessee to avoid that estate tax specifically. They're taking capital and creating jobs other places. It truly is small businesses and family farms that are impacted by this, both of which we want more of in Tennessee, not less. I honestly think this creates more revenue for the state in the long term."
As for the food tax, Haslam said: "If we're going to lower taxes for Tennesseans, that's the only way to really touch every Tennessean in a significant way. So we felt like it was important to do both at the same time."
As an interesting side note, the governor's announcement is something of a snub of Senate Speaker Ron Ramsey. He was for cutting the state's Hall tax on income from interest and dividends. House Speaker Beth Harwell had been pushing for the inheritance tax cut, and she won. She was by Haslam's side at today's media event. Ramsey didn't attend.
Comments (22)
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On the other hand, property and wealth transferred to an heir have generated taxes from the beginning and will be taxed as long as the property and wealth continue to exist. Do property and wealth really need to be taxed again because of death? If the state has power to tax, why mess around? Why not confiscate the whole estate. Oh, wait, that wouldn't be fair, would it? Then what's fair about taking part of it when someone dies?
I don't have a problem with making the state's estate tax laws agree with what the Federal government's are.
"They're taking capital and creating jobs other places."
Does the governor have any examples of people going to other states and creating jobs specifically because of the estate tax? I find this claim very dubious. And Florida is not a cheap place to die, estate tax or not. And while the estate tax affects very few people, they happen to be the people who give big to Republicans. I guess it's called return on investment.
"Then what's fair about taking part of it when someone dies?"
What's fair about inheriting wealth, in the first place? Go out and make your own damn way in the world.
Since when is actively encouraging an American Aristocracy ok?
I agree with Min. Currently you can inherit a million dollars tax free. That's plenty. Why should incredible amounts of money be concentrated in the possession of heirs who add nothing to society?
This is another matter on which people who aren't rich vote entirely against their interests. If you don't expect to be leaving anyone more than a million dollars, or inheriting more than a million dollars, DON'T vote for or advocate a higher estate tax. It makes no sense. If you're going to do that, then you may as well go to the homes of people like Paris Hilton and offer to do their laundry.
I say directly link any increases in the inheritance tax exemption to increases in the state's minimum wage.
Can we just raise gast's taxes? Raise his and his boyfriend's Tony Paredes, just to hear them howl.
0.2%? Wow! Nice reduction, and still have the highest food tax of any state in the nation, not exactly much of a reduction is it, not much of a state to stay in once you have retired either...
First, who is Tony Paredes? Am I missing something?
As for estate taxes, Min and her ilk must sooner or later understand it is not her money to be scattered around, but rather people's property which need not be taxed. Rising taxes will, as all know, be spent in ways that benefit no one. So, she needs to re-think this along with that picture which gets on my last nerve. Look at it. It should be removed.
At the end of the day, Min just does not like people who have managed to accumulate a million dollaars, really not so much these days.
So on "one hundred dollars" worth of food he wants to reduce our taxes by "twenty cents"?
Thanks Gov Haslam bro! Now I can invest that twenty cents in credit default swaps.
Ye gads, I feel rich already.
If you wish to stimulate the economy more, ask: Steve Martin - How to get a mi-llllll-i-on dollars.
"There's a whole lot of people who used to live in Tennessee who don't anymore because it's cheaper to die in Florida," Haslam said. "I can tell you a whole lot of people who spend less than half their year in Tennessee to avoid that estate tax specifically. They're taking capital and creating jobs other places. It truly is small businesses and family farms that are impacted by this, both of which we want more of in Tennessee, not less. I honestly think this creates more revenue for the state in the long term."
How stupid.........................stoopid, stoopid stoopid. Look at the numbers....do you really think those people domiciling elsewhere are taking their small businesses and farms to other states??? Well, until poor republicans stop making gay marriage and abortions their primary concern and wake up to the fact that they are being used as idiots to vote against their own well being............oh well......same-o, same-o.
""I can tell you a whole lot of people who spend less than half their year in Tennessee"
Exactly. They're called snow birds and they go to Florida because it's warmer, not because they want to invest in new businesses.
We got 8 years of Bush's tax cuts for the rich and we LOST 5 million manufacturing jobs. Thanks all you job creators!
"So, she needs to re-think this along with that picture which gets on my last nerve."
Then my work here is done.
"At the end of the day, Min just does not like people who have managed to accumulate a million dollaars, really not so much these days."
Hey John, does Bill Gates and Warren Buffett not like people who have managed to accumulate a millon dollars? Because they have campaigned to NOT end the estate tax. And it was a Republican president (yes I know, a RINO one) Teddy Roosevelt who was the first champion of an estate tax. He thought concentration of wealth was a bad thing. And he came from a family of concentrated wealth. So please dispence with the "class warfare" rhetoric John.
Obviously I meant "don't vote for or advocate a higher estate tax exemption" in my last post. Duh.
Obviously in my last post I meant "don't vote for or advocate a higher estate tax exemption." And if this post is a repeat, oops. Can't tell what happened to the first try.
If I work my whole life and pay taxes on every dime I make who thinks they have a right to RE-TAX what I've left my children? That is ridiculous! Typical socialist BS!
The food tax cut is illegal as proposed. By rule, the combined state and local rate has to be evenly divisible by .25%. So they either need to change the rule or knock off another .05%. Surprised no one has noticed...
