Looking Beyond State Tax Reform
While the campaign to pass progressive
tax reform in Tennessee will remain the central focus of TFT until passage
of such reform, TFT has at times weighed in on other state and national issues
that reflect our values of fairness and a strong public sector. This section
of TFT's web site includes facts and resources on these other issues.
State Issues
Closing Corporate Tax Loopholes
Several large, multi-state corporations have figured out a way to avoid paying Tennessee's business taxes by hiding their profits using out-of-state subsidiaries in Delaware and Nevada. Since Tennessee's locally-owned businesses don't have the luxury of an out-of-state subsidiary to hide their profits, so they generally pay the business exise tax in full. That's just fair.
This tax avoidance scheme, though fully legal,
is indefensible even for the most pro-business advocates.
21 states have already closed this loophole, including three
in 2007 alone. It's time for Tennessee to do the same.
Click here to
learn more.
Reforming the Single Article Cap
Despite the popular perception, the sales tax does not
apply equally to all items. While the first $3,200 of a
typical purchase is subject to a sales tax of about 9.5%,
the value of a single purchase over $3,200 is taxed at only
7%. As a result, a $3,000 well-used car is taxed at 9.5%
while a $50,000 luxury car or SUV is taxed at about 7.2%
(9.5% on the first $3,200 plus 7% on the remaining $46,800).
Reforming the cap so all similar items are taxed at the
same level is an important step toward fairness. Click
here to learn more.
TABOR: Taxpayer Bill of Rights or Taxpayer Bill of Restrictions?
Once the only state in the nation
with a TABOR, voters in Colorado say "enough!"
and gut TABOR's core provision in the November 2005 elections.
This huge victory pulls the rug out from under TABOR advocates
elsewhere, including Tennessee. Read
more about the Colorado vote.
In 2004, the effort to pass TABOR
was defeated in Tennessee thanks to the work of TFT members
and supporters across the state!
National Issues
Fair Tax / Flawed Tax: Why the National Sales Tax is Bad
for America
Over the past few years, the so-called “FairTax”
has gained attention in limited circles through talk radio,
blogs, YouTube and MySpace. Despite its lack of support
from any credible economist, that attention has been bleeding
into mainstream media.
So what is the so-called “FairTax”? It’s
a proposed national sales tax that would, in theory, replace
all other federal taxes. Advocates of the plan argue that
it would “simplify” the tax code by getting
rid of the estate tax, personal income tax, payroll tax,
corporate income taxes and the IRS itself.
The FairTax, however, would only replace one government
agency with another, while shifting the tax burden onto
middle- and low-income families.
Click here to learn
more.
Federal Tax Policy
TFT is a member of two national networks, the Fair
Taxes for All Coalition and the Tax Fairness Organizing Collaborative, that
advocate for progressive tax policy at the national level, including a roll-back
of the Bush tax cuts that primarily benefited those at the very top while deepening
an already record deficit.
Outside Resources for Tax and Budget Issues:
The following organizations, while not
necessarily affiliated with TFT, have valuable information on tax issues:
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