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The 107th General Assembly just ended and Tennessee lawmakers continue working for the people who elected them. Down below are several reasons companies and industry need to relocate to Tennessee and why families live and work in Tennessee.
Reducing taxes on Tennesseans was the biggest effort made by the legislators. Here is an excerpt from this past session:
During the 2010 election cycle, House leaders promised they would do everything to maintain the State’s strong financial record, balance the budget, and return hard-earned taxpayer dollars to Tennesseans. Over the last two years, they have followed through on that promise. Following this session, every Tennessean will realize tax savings because of these policies.
Death Tax Eliminated The 2012-2013 budget includes the first phase of the death tax elimination, which will be completed in 2016. Supporters argue that the measure will not cost the State money, and instead will boost revenues. Further, Tennessee is one of only two States in the South with a death tax, forcing those affected to flee to nearby States. The full repeal will represent a $94.6 million tax cut.
Conservative lawmakers argue the death tax breaks up family farms and small businesses, forcing families to make tough decisions at what is often the most difficult times in their lives: the passing of a loved one. In many cases, families are faced with selling off parts of farms and land or closing a small, family-owned business in order to pay the tax bill. With the elimination of this harmful tax, Tennesseans will benefit and prosper.
Gift Tax Repealed Going hand-in-hand with death tax elimination is the complete elimination of the gift tax this year—a $14.9 million tax cut. Tennessee is one of only two States in the nation—the other being Connecticut—that imposes a gift tax. Tennesseans are subject to it if more than $13,000 in cash or assets are gifted to, for example, a family member. As families pass land, businesses, and homes down to future generations Tennessee levied the tax on those individuals. Now, the fruits of this labor can transfer to the next generation without paying a hefty tax.
Food Tax Lowered The General Assembly also reduced the food tax this year from 5.5 percent to 5.25 percent. This creates savings of $22 million for all Tennesseans. As food and gas prices continue to increase, the food tax cut will put money back in the pockets of hard working Tennesseans. Both the Governor and legislative leaders have vowed to further cut the tax in the subsequent years.
“This is a landmark moment for Tennesseans,” stated the House Majority Leader. “We believe, when government revenues are higher, that money doesn’t belong to the State but to taxpayers and should be returned to them immediately. Our Majority was placed here to balance the budget, cut wasteful spending, and lower taxes. Today we carried through on that promise.”
One Representative, who guided the death tax repeal to full House passage, remarked, “Today is an exciting day. We looked at the numbers, rolled our sleeves up, and worked with the Governor to come up with two bills that will really benefit all Tennesseans. The repeal of the death tax is especially noteworthy because it will help convince the job creators in our State to remain here and help grow our economy. This doesn’t benefit one group; it benefits any Tennessean who is concerned about job growth.”
Another Representative, a critical cosponsor of the measure to repeal the death tax and vocal proponent for small businesses, immediately applauded the move. “With this action, we are ensuring families and small businesses won’t be harassed by government with harmful taxes after a loved one passes. Not only is this legislation pro-business, it is also pro-family.”
The food tax cut was the responsibility of a Middle Tennessee Representative. Following the final vote on the bill he stated, “This wasn’t a partisan move, it was a move to help every Tennessean. The Governor asked to work with us on lowering the food tax and this is the product of that hard work. It’s something we all can be proud of.”
“These tax cuts are proof of our motto: It matters who governs,” concluded the Majority Caucus Chair. “A recent study shows a repeal of the death tax ten years ago would have grown our economy an additional 14%. While the previous generation of leadership failed to take action, this generation of conservative leadership is committed to charting a new path that creates jobs and limits government.”
House Passes Constitutional Amendment Banning State Income Tax
Signaling this would become a banner year for tax reform, House legislators early in the legislative session took the first step on an important measure to ban any income tax from ever being implemented on Tennesseans.
Lawmakers took a strong stand on behalf of taxpayers to ensure Tennesseans will never have to face a tax on the money they work so hard to earn. Lawmakers overwhelmingly passed a constitutional amendment, Senate Joint Resolution 221, to permanently place language in the Tennessee Constitution banning the implementation of an income tax. The amendment now must pass the next General Assembly by a two-thirds vote before being placed on the 2014 election general election ballot.
One Representative stated, “America was built on the notion of self-reliance. Our tax code should reflect that principle and provide greater flexibility for taxpayers. Countless studies have shown income taxes are hurtful to State economies and harmful to the financial well-being of taxpayers while a sales tax allows taxpayers to be in charge of their resources. With this vote, we are fulfilling our promise to Tennesseans that we will protect them from wasteful spending and government actions that hurt job creation in the private sector.”
In passing SJR 221, the Majority painted a strong contrast between how government operates in Tennessee and the dysfunctional ways of the federal government in Washington.
“SJR 221 removes all doubt about whether Tennesseans should have an onerous income tax levied against them,” stated the Chairwoman. “Clearly, we hear what the voters are telling us. I would hope Washington would do the same and get the federal government out of the way of America’s job creators.”
Here is a link to the article written up above and it also discusses fast track legislation to bring more jobs to Tennessee.
The purpose of this blog will be to discuss the market conditions in the Dyersburg Tennessee area of west Tennessee. There will lots of useful information for buyers, sellers, bankers and other users of Dyersburg real estate information. I will also often quote other professionals.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.