NASHVILLE, Tenn. (AP) — A tax expert is warning state officials that Tennessee would be among the hardest-hit states if federal officials don't resolve the so-called fiscal cliff.
The Chattanooga Times Free Press (http://bit.ly/Tt3Rk1 ) reported Dr. Stan Chervin updated Gov. Bill Haslam and other state officials Wednesday, saying states that depend heavily on sales taxes for revenue would feel the most stress if tax breaks are not extended.
Chervin is a senior research consultant with the Tennessee Advisory Commission on Intergovernmental Relations.
He noted that about 54 cents of each tax dollar in Tennessee comes from the state sales tax. Tennessee has no broad-based income tax, like most other states do.
Chervin said if automatic tax hikes take effect in January, people will spend less and sales tax collections will fall.
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Information from: Chattanooga Times Free Press, http://www.timesfreepress.com
Remove Money from Politics writes:
November 29, 2012
1:14 PM
This is going to require a lot of people in congress to make political sacrifices.
The Dems are going to have to work with the GOP to get rid of loopholes and deductions that don't really make sense. Too many people and businesses with money game the system so they don't have to pay any taxes. This includes removing tax benefits for outsourcing and even adding in tax penalties. There should also be penalties for purposely keeping people part time to avoid giving them insurance.
The GOP are going to have to let the rates increase on the wealthiest. They make enough money, they can afford to pay more. The economy does not move if money is not being spent, and the very wealthy tend to hang on to vast quantities of their money. They'll need to pay more in taxes to make up for it.
Food stamp benefits in general need to be cut by 10-15%. They're a bit too generous right now. People on food stamps can live off steak dinners every other day and still have money left over, and this is not the outcome the program was designed for.
Social security and medicare should not be cut for future generations. Young people are paying more into the system than the current generation of beneficiaries did, they should not receive less benefits. If anything, the current generation should be the one to suffer any cuts, as they are the ones that paid less into the system. The big problem with social security though is that congress kept borrowing from it. Young people should not have to shoulder the entire burden created by the older generations.
Some creative solutions are in order for welfare and food stamps to ensure that only people who qualify are receiving them. This could mean requiring more documentation, and possibly something along the lines of what Mississippi is doing for people who get the childcare subsidy (fingerprint scanners to monitor who is picking up and dropping off the kids and when).
mudman writes:
November 29, 2012
1:35 PM
That makes no sense at all. Tax a person more for making more? If a rich man is taxed at the same rate as a poor man thats fair to each one. You stated the economy dont move if money is not being spent , well the last four years of the "government stimulus" has proven that theory wrong. The social security issues that you bring up about who pays more in and who deserves to be getting back more , prove to me you dont know or understand anything about SS.
Remove Money from Politics writes:
November 29, 2012
1:44 PM
The economy is actually getting better because of the stimulus. Most economists agree that without it, it would have tanked. Shows what you know.
And as far as the tax rate not making sense to you, even you have to understand that $5000 a year on food means a lot more to someone making 30 grand than it does someone making 300 grand.
cityguy writes:
November 29, 2012
2:16 PM
I know several families who receive food stamps, and none of them are able to have steaks at all, let alone every other day. And as far as having money left over, you have no idea what you are talking about. I know some people should not be getting food stamps, but the vast majority are barely getting by every day. How about contacting the DHS and find out exactly how much food stamps a family with 2 kids get each month. You will be shocked, and if their parents even have a part time job. If they get any kind of raise above the minimum wage, they are either cut off entirely from benefits, or their amount is drastically reduced. So get your facts before you condemn every hungry child to have even less food to eat.
cityguy writes:
November 29, 2012
2:28 PM
Also, it is time for the republicans to do what they are constitutionally sworn to do, collect enough taxes to pay the national debt, and provide for the common defense and the welfare of the United States. SO write, call, email or whatever you have to do. To force the republicans to finally vote to increase the taxes on the wealthiest citizens. Or you can blame yourselves and the republicans for pushing this nation off of the cliff. No one else can be blamed.
TBaileySr writes:
November 29, 2012
3:38 PM
We need to do completely away with the Income Tax. We need to go to a national sales tax. That way it is fair for rich and poor alike and stimulates commerce.
http://en.wikipedia.org/wiki/FairTax
http://www.fairtax.org
Remove Money from Politics writes:
November 29, 2012
5:29 PM
Single male and his brother get about $250 from the state in food stamps.
My grocery budget for myself is a bit over 100 a month, and I eat well. If someone needs assistance, they need the minimum to get buy. They don't need to eat like kings.
Fairtax is dumb. National sales tax will just cause people to hold off on purchases more, and then the economy moves even slower. Also, as I explained earlier, it is not fair to poor people. They get taxed the same rate, but they need to spend a much higher percentage of their income on the staples - food, shelter, clothing, etc.
farmerroark writes:
November 29, 2012
7:48 PM
City guy-- no, i whole heartily disagree the democrats
were the main ones that brought the economy down
with thier massive bail outs and give away programs.
The democrates idea of compromise is to approve
every bill that they introduce. Why don't they compromise
with the republicans. And by the way Bill Clinton created
the deal that caused our factories to move overseas with
NAFTA. He also deregulated wall street which created the melt
down.Lyndon johnson and his great society remember these.
Of course not.
that. Practically ever bill that hurt this country was introduced
by a democrat with a democratic president like the bozo
thats in there now.
Remove Money from Politics writes:
November 29, 2012
8:34 PM
Got any citations for that, or just spouting nonsense like most area conservatives?
mudman writes:
November 29, 2012
11:09 PM
The government was not designed to run with a constant surplus , if you always have a surplus its an indicator you are taxing or taking in to much. The best way would be to reduce spending and both partys are guilty of overspending. You cannot have a steakhouse appetite and a Mcdonalds income and expect the guy sitting next to you to pick up the tab. Be responsible for yourself and family, dont rely on the government for everything. When you, do that creates a socialist society much of what you have been recomending RMFP. Socialism is best thought of as "redistributing the wealth", weve heard that recently......havent we?
Whitey writes:
December 4, 2012
7:03 AM
The Republican Congress are unwilling to agree with anything President Obama is trying to pass, and for no good reason. They are still upset that Obama won another election. In my opinion, they are racists and they hate blacks, and that's why they're the least productive congress since WW II. They're being this way for revenge because the Democrats won another election. Vote them out in 2014 [Boehnner, McConnell, and Kan'tor] and you will see real progress.
Amare Delectare writes:
December 8, 2012
2:52 PM
The tax break that WalMart received last year ($9,000,000,000.00 That's nine billion dollars) would provide 60,000,300 that's sixty million, three hundred thousand families) with a check in the amount of $150.00
That's just one corporation's welfare.
Amare Delectare writes:
December 9, 2012
5:34 PM
60,000,300 I meant to say sixty million three hundred families