There are four state constitutional amendments on the ballot this November. The first deals with abortion and the second revises how judges are selected, both of which will get plenty of media coverage. The fourth is a perfunctory change that would allow veterans groups to hold bingo tournaments. The third amendment is one that will be overshadowed but is just as important. If approved, Amendment 3 will finally settle the question of an income tax in Tennessee. Despite language in the Tennessee Constitution that permits only an income tax on investments (i.e., the Hall Income Tax, which incidentally Beacon is seeking to put to rest as well), this hasn’t stopped past attempts to impose a destructive income tax on Tennesseans’ hard-earned labor. Three times the state’s highest court has said an income tax is unconstitutional, but a former attorney general once opined that if properly worded, the legislature can impose one nonetheless. That’s precisely what state lawmakers did in 2002, and it was ugly. Dragging out into the summer months, the legislature failed to pass a budget, shutting down all but essential government services. (I even remember getting out of school for a few days when my university shut its doors temporarily. For that I am grateful.) I’m even more grateful that enough state legislators stood firm against the Democratic legislative leadership and Republican governor. Since then, the term “income tax” has been a political pariah in all but the most left leaning of circles. But that doesn’t mean it always will be. Demographics change, and someday lawmakers might succeed at doing what their predecessors back in 2002 were unable to accomplish: the utter destruction of our economy. And they will likely have plenty of help. Advocates from all stripes lobbied for an income tax back then and would relish at the chance to do it again. Special interest groups, many representing local governments thirsty for easy access to more taxpayer money, wore buttons emblazoned with “Do the Right Thing.” According to multiple legislators reflecting on the time, even school boards and their association abdicated their direct mission of educating students to push for the unpopular tax. Fortunately, lawmakers did “the right thing”—albeit the opposite of what these special interests wanted—and rejected an income tax. That’s important, because every day 20,000 taxpayers flee states that impose an income tax and settle in non-income tax states. And since 1967, states that tax income have witnessed an explosion in the size of government (up 42 percent) and an equally devastating implosion in personal income (down 64 percent). That’s why Amendment 3 matters. It will ensure that Tennessee will forever remain income tax-free, despite whatever harebrained tactics politicians and special interests might otherwise try. -Justin Owen Enjoy the Beacon blog? Help us keep it going with a tax-deductible gift.
KEEP IN TOUCH WITH US
LATEST POSTS
Colman v. Tennessee Board of Veterinary Medical Examiners: Helping Animal Chiropractors Fight Back Against Overburdensome Regulations
Executive Summary Animal chiropractors serve an important role in the animal health care system and are distinct from veterinarians. Althoug...
Tennessee Growth Tamed by Taxes
To offer protection to all Tennessee residents, state lawmakers should look at the 46 other states that have implemented some sort of proper...
Splitting the Farm—An Excerpt from “Modern Davids”
In 2012, legislators passed a bill to phase out the death tax over four years. Roger not only gets to save his farm and pass it on to his lo...
We can’t rely on FEMA, nor should we try
As citizens, we can mobilize quickly, efficiently, and in heartfelt ways no federal government agency ever could.
Beacon Poll: October 2024 Results
Today, we released our next installment of the Beacon Poll, a statewide survey of 1,200 registered Tennessee voters comprised of questions a...
Help support flood relief in Tennessee
Flooding caused by Hurricane Helene left communities in East Tennessee devastated, and our fellow Tennesseans are in need of crucial resourc...
The Right to Try
Amanda's story proves that states can put pressure on the federal government to act, and how just a few individuals like Amanda can have an...
Tennessee Trends: The State of Tennessee’s Economy
To further enhance Tennessee's economy, lawmakers should look at implementing additional tax reforms.
KEEP IN TOUCH WITH US
WANT TO DO A STORY ABOUT SOMETHING YOU SEE HERE?
CONTACT US AT:
mark@beacontn.org
(O) 615-383-6431
WHO ARE WE?
The Beacon Center of Tennessee empowers Tennesseans to reclaim and protect their freedoms, so that they can freely pursue their version of the American Dream.