Posted on 10/25/2009 3:58:21 PM PDT by The Magical Mischief Tour
CHATTANOOGA, Tenn. -- A study shows Tennessee's average 9.4 cent tax on every $1 spent is the highest sales tax rate in America. Opponents of the sales tax say it's most unfair to those least able to pay but others favor the sales tax over a state income tax.
The author of the tax comparison study, Tax Foundation staff economist Kail Padgitt, said an increasing number of states are raising so-called "millionaire taxes" on income of the wealthiest taxpayers and so-called "sin taxes" on cigarettes or beer. Padgitt told the Chattanooga Times Free Press the foundation is "definitely seeing more movement upward than downward in taxes on the state level, and the most popular seem to be to target particular types of tax groups."
The nonpartisan study group said the average 9.4 cents combined state and local sales taxes for every $1 spent by consumers in Tennessee is nearly 38 percent more than the median sales tax nationwide. By comparison, the combined state and local sales tax rate averages just over 7 percent in neighboring Georgia and 6.15 percent in Alabama. Although some localities in central Alabama have higher combined rates of up to 11 percent, Tennessee averaged the highest rate among all 50 states. The Tax Foundation said Tennessee derives nearly 57 percent of its tax revenue from sales taxes, third highest among the 50 states.
Critics of Tennessee's reliance upon consumer taxes say it is unfair to the poor and sends consumers to border states to shop. "Tennessee's sales tax is regressive tax so those that can least afford it have to pay the most," said Samantha Maples, a community organizer for Tennesseans for Fair Taxation, a pro-income tax group. "In addition to being unfair, the sales tax also hurts businesses along our borders and it is simply inadequate to fund our government." But Drew Johnson, president of the Tennessee Center for Policy Research, said relying on sales taxes is better than using income taxes to fund government.
Tennessee is one of nine states that does not impose a tax on earned income, although the state does have a Hall income tax on dividend income. "Our sales tax in Tennessee doesn't need to be as high as it is and the government should look for ways to cut spending and waste," Johnson said. "But the sales tax is still the fairest and most responsible way to tax residents of the state. Tennessee is a haven for entrepreneurs because we don't have an income tax."
Does TN have property taxes?
Highest? I paid $$2.23 for a $2.00 purchase at a Newport News, VA Burger King.
I rent, don’t won property, but I believe it does.
own...
Buy a meal at a restaurant or stay in a motel there and you’ll really get the sticker shock.
Yes, but there's no income tax.
There was probably another tax tacked on your bill. We are the highest in the USA in sales tax.
Tennessee property taxes are CHEAP compared to most blue states. As far as the sales tax; EVERYONE pays, and that is as fair as it gets.
Didn’t they raise the sales tax to pay for healthcare?
“Critics of Tennessee’s reliance upon consumer taxes say it is unfair to the poor and sends consumers to border states to shop. “Tennessee’s sales tax is regressive tax so those that can least afford it have to pay the most,” said Samantha Maples, a community organizer for Tennesseans for Fair Taxation, a pro-income tax group”
I think the key word in the quotation is, “community organizer”. Nothing more needs to be added.
Sales Tax rate in Pico Rivera and South Gate, CA is 10.75%, but some of that is local, not state tax.
I lived in TN for years, still have a home there. Moved to NC for husband’s job (which is now gone). I’d rather pay sales tax than income tax. Other taxes in TN are low: gas is always .10 to .20 lower in TN compared to NC. There are no personal property taxes or wheel taxes on vehicles each year (as there are in NC). I could go on and on. In addition, property taxes and utilities are very reasonably in TN. About half of what I’m paying in NC. Electricity and water are plentiful and reasonably priced as is housing and property.
Not at the state level; I'm not aware of any state that does. But I assume Tennessee's state constitution permit counties and municipalities typically levy these taxes, which, of course, they do. They vary so much from county to county and city to city, both in nominal rate and in appraisal practices, that interstate comparisons are almost impossible.
I don't like taxes any more than the next FReeper, but property taxes -- taxes merely on having something as opposed to taxes on earnings or spending -- are particularly odious.
Not as high as Obama’s wedge shot on the 10th green this morning.
I guess we come in second.
Yes but not bad. We only pay $600 a year in Knox county on a house plus nearly 12 acres zoned agriculteral.
I prefer a high sales tax over a state income tax because eveyone pays it.
All of this crap ends up on the shoulders of the middle class working man/woman.
All of you idiots advocating higher taxes and bonus/pay/paycheck caps on ‘the rich’ will get what you deserve—a higher tax bill and a lower standard of living as the powers that be, public and private, pass the burden right onto you.
I’ve met far too many conservatives lately who just don’t get it.
I agree with you totally.
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