Posted on 06/04/2002 5:18:32 AM PDT by GailA
Edited on 05/07/2004 9:20:02 PM PDT by Jim Robinson. [history]
Sen. David Fowler yesterday presented a new variation of his income tax/sales tax/constitutional convention plan to the Senate Finance Committee. He will seek a committee vote on it today.
Fowler's plan consists of several steps, with some being contingent on the outcome of a vote on whether to call a constitutional convention on taxes.
(Excerpt) Read more at tennessean.com ...
Senate panel debates complex tax proposal Plan's first step is increase in sales tax
By Richard Locker, The Commercial Appeal June 4, 2002
NASHVILLE - Resuming a pattern set over the last four years, the Senate and House of Representatives began moving along opposite paths on the budget issue Monday, with the end of the fiscal year June 30 less than a month away.
For three hours Monday, the Senate Finance Committee debated a complex tax proposal by Sen. David Fowler, R-Chattanooga, that would:
Set a uniform statewide sales tax of 8.75 percent on Sept. 1.
Set up a Nov. 5 referendum on whether to call a constitutional convention on taxation. And, if the referendum were to fail, impose a 3.75 percent state income tax on Jan. 1.
The Senate panel may vote on the plan today. At the same time the House Finance Committee is set to open two weeks of writing a budget with massive cuts in state services after the failure of successive new tax proposals on the House floor last month.
State finance officials say the state faces a $480 million budget deficit in the fiscal year ending June 30 and that the only way left to meet the state constitutional mandate of a balanced budget is to take the money from various reserve funds. Spending the reserves requires legislative OK. The House approved such a measure last week, but the Senate has yet to begin moving a similar plan through its committees.
The the bigger problem, however, is the $800 million to $1.2 billion in new revenue officials say the state needs next year, and there is no consensus in the General Assembly on how to generate that much money.
Fowler presented the latest version of his income tax-sales tax-constitutional convention proposal to a skeptical Senate Finance Committee on Monday and said he will ask the committee to vote today to send it to the Senate floor. Both the House and Senate have suspended floor sessions until June 19 so that their finance committees can try to come up with a plan. Fowler's plan would raise over $1 billion a year through a complicated series of new taxes. Here it is in essence:
To come up with new cash fast, the state sales tax would rise from 6 percent to 7 percent July 1. On Sept. 1, the two-month 1-cent increase would disappear, and the state would move to a uniform 8.75 percent sales tax. All local sales taxes, which range from 1.5 percent to 2.75 percent, would also be abolished, and the sales tax on grocery foods would be cut to 4 percent.
In addition, the sales tax would be extended to some items and services now exempt from taxation. The $21 annual motor vehicle registration fee would increase by $50, and a 2 percent sales tax on gasoline and diesel fuel would be imposed.
Then voters would decide on the November ballot whether to call a state constitutional convention in 2004 to consider wholesale tax reform. If the referendum were to fail, Fowler's bill would automatically impose a flat-rate, 3.75 percent income tax on Jan. 1, 2003, with a $10,000 exemption for singles and $20,000 for couples. All sales taxes on grocery food, clothing and nonprescription drugs would be repealed on Jan. 1.
Richard Locker may be reached at 615-255-4923 or locker@gomemphis.com.
FOWLER'S FOUL PLAN IS AS FOUL AS THEY GET! A DIRTY UNDER HANDED WAY TO GET THE IT IN THE BACK DOOR!
http://www.timesnews.net/index.cgi?CONTEXT=story&BISKIT=1186382793&id=60777&category=63
New income tax/sales tax/constitutional convention bill offered
By TOM SHARP
Associated Press Writer
-If the constitutional convention was rejected, a flat rate income tax of 3.75 percent would be implemented as of Jan. 1, 2003.
Even though it might lead to an income tax, the Fowler plan has support from senators who probably would not vote for a staight income tax plan because it gives voters a chance to call a constitutional convention, which in effect would be a referendum on an income tax.
The bill is SB3013/HB2937.
Their definition has alread gone from $100,000/year to $30,000/year all the way down to $10,000/year. Isn't this what we have been saying all along?
BTW, there is no way Fowler can get an accurate estimate of support for an income tax with a committee whose main membership requirement is being a yes man.
Finance, Ways and Means
11 Legislative Plaza Phone (615) 741-7881
Douglas Henry, (d) Chairman
Jim Kyle, (d) Vice-Chairman
Robert Rochelle, (d) Secretary
Ben Atchley (r), Bill Clabough (r), Ward Crutchfield (d), Gene Elsea (r), John Ford (d), Joe Haynes (d), Tim Burchett (r), Mike Williams (r)
800-449-8366 or 615-741-3011
His foul plan is even more foul than Boss Hogg's or Prince Roach's in that it is MORE under handed vs their straight forward approach.
HOW MANY TIMES MUST THIS BE EXPLAINED, There is no such thing as "Temporary Tax Increase". If you believe in Temporary Tax Increases, I am your fairy godmother.
BTW, I am male.
David Fower sez, "Would you prefer the gurney or the chair?"
"There is a great chance the income tax will pass," Rep. Bobby Wood told the Pachyderm Club on Monday.
The leader of the Hamilton County legislative delegation said the Legislature is running out of time to solve a gaping funding shortfall.
He said in the luncheon speech, "The so-called DOGS budget would be bloody, bloody."
Rep. Wood added, "To be totally honest, we can't cut our way out of it."
He said House Speaker Jimmy Naifeh "has 47 votes and he will really be putting the move on to get the other three."
Rep. Wood said the flat-rate income tax that Speaker Naifeh wants might pass, or else a version by Sen. David Fowler of Signal Mountain that is tied to a constitutional convention.
Rep. Wood said a no-tax-increase budget means no state employee or teacher pay raises, no new reading program, possible elimination of the state departments of tourism and economic and community development, and "raids on every fund that's loose," including Tennessee Housing Development and the crime victims' compensation fund.
He said a House committee will go to work this week with hearings involving K-12 education, higher education, and state departments. "We will be calling the commissioners in one by one, We've already done that twice before, but I don't think they thought it was real."
Rep. Wood said in recent days he has been more frustrated than any other time in his 26-year legislative career.
"It's not a pretty picture," he said.
Rep. Wood said he believes that real TennCare reform is finally at hand. But he said the steps announced by the Sundquist administration "are the same things the Republican Caucus tried to pass three years ago."
He said a performance-based budgeting bill that was passed by Democrats last week was initiated by the GOP earlier "and taken away from us."
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.