Tennessee DU'ers - a tax question.

[TNDemo]

When the big brouhaha was going on about a state tax a couple of years ago, can you remember if the Hall tax would have been eliminated if we had a state tax?

[leftyandproud]

1. greedy anti tax zealots killed a state income tax..

thats all I know...heard about it on national radio

[Famine]

2. Hall income tax would be absorbed into overall income tax

The items that the Hall income tax is collected on would have been considered income like any other and the rate which you paid on your paycheck income would have been applied to your investment income. Since most of the proposed plans had lower rates than the Hall tax, it would have been a decrease in percentage on that part of your income. It would have been compensated of course by taxing a lot of your income that TN doesn't tax now.

The income tax battle a couple years ago was basically a tax increase battle. The fight was about who was going to get stuck for an extra billion a year that the state needed to pay the costs of TENNCARE, our health care program that covers about a fifth of the population.

We got a sales tax increase instead of an income tax.