October 15, 2007
Tennessee is a low-tax state, but for who?
Some opponents of a food tax cut argue that we don't need
to cut the food tax because Tennessee is already a low-tax
state. However, according to a 2003 report, “Who Pays?
A Distributional Analysis of the Tax Systems of all 50 States,”
nearly half of all Tennesseans, the bottom 40% of income
earners, actually pay higher state and local taxes than
the national average for the same income groups.
The report further notes that Tennessee has one of the
most inequitable tax systems in the nation where low-income
families pay over three times the taxes as a portion of
income than the state's most affluent.