Home | Entries [Previous |Next]
0 Comments
Daily Dose for March 30, 2007
Bredesen to Compromise on Grocery Tax Relief
Bredesen to Compromise on Grocery Tax Relief -- Looks like state Republicans are flexing their political muscle. After weeks of adamantly denying the need to reduce the state sales tax on groceries, Democratic Gov. Phil Bredesen saying: "I recognize the political realities of getting things done." Bredesen, who is fighting hard for a 40c tobacco tax increase says the 1% reduction in the state's sales tax on food that Republicans have long demanded could be a compromise for the tobacco tax increase. State Sen. Mark Norris says he's seen a softening of the Governor's position over the course of the last week and Bredesen is now "more pragmatic and less dogmatic." State Finance Commissioner Dave Goetz said any tax-break proposal would have to be careful not to throw a wrench into the state’s recurring tax base. Lt. Gov. Ron Ramsey speculates on the compromise in today's Kingsport Times-News: "It may even come down to the point that we take the sales tax off food for a couple months, say, in November or December." More here. An alternative take: The Commercial Appeal reports some members are calling for the tobacco tax increase to be earmarked for education, since currently the bill simply dumps the proceeds from the tax in the state's general fund. Plus more evidence of a compromise: Democratic lawmakers are "confident" the tobacco tax bill will clear the Ag Committee.
Dems Left Without a Candidate in District 12 -- Remember the big fuss back in December when State Sen. Tommy Kilby announced he wasn't going to run again? Then Democratic candidate Joe Caldwell came along. Well, it turns out Caldwell will not run for the District 12 spot. Caldwell: "[O]ver the last three months, I have been presented with some great business opportunities that do not come about often. These career changes would present challenges to truly running the type of energetic, enthusiastic, and motivating campaign that I would expect to run." Kilby's seat is one of the few true swing districts in the state, so neither party should have a problem finding a top-tier candidate, although Caldwell in the presser curiously asks Kilby to reconsider not running.
Federal Sales Tax Deduction to Go -- With the Democratic controlled Congress, the future of the sales tax deduction, which saves more than a half-million Tennesseans more than $200 million a year on federal taxes, is again in doubt. About one-fifth of Tennesseans use the deduction on their returns each year, according to the Internal Revenue Service. Without the tax-cut extensions, which also included reductions in income and estate taxes in addition to the sales tax deduction, the average Tennessee taxpayer would pay an additional $2,600 per year, according to Congressman Marsha Blackburn.
Knox Group Hires Consolidation Consultant -- Knoxville City Councilman Joe Bailey says he is helping organize a single-issue group to fight for consolidation in Knox County. The group has hired consultant Mike Knotts of Nashville who is familiar with the Nashville-Davidson County Metropolitan government. Bailey said he wants this effort to be a "full-fledged grassroots campaign" that would lead to the appointment of a charter commission to fashion the new government structure. Bailey is interested in the county mayor and Knoxville mayor making appointments to a charter commission that immediately would begin drafting a blueprint for metropolitan government.
Tennessean Profiles Androphy -- The Tennessean profiles Bruce Androphy, the state's ethics chief, who was hired from a similar position in New York after a job was created for him in the wake of Operation Tennessee Waltz. Some lawmakers are apparently grumbling because Androphy is an outsider who doesn't understand TN politics, but others say this is a good thing.
