The House Republican Caucus leadership today called upon Governor Phil Bredesen "to stop proposing new tax increases as a way to balance the budget."
Republican leaders said their statement "comes after the administration proposed another $85 million in tax increases on Wednesday by increasing the sales tax on single article sales."
“The governor is showing a blatant disregard for the challenges small business owners and average Tennesseans face,” said House Majority Leader Jason Mumpower.
“As the economy is struggling mightily, this would do nothing but provide a setback for recession-weary Tennesseans.”
Last week, Governor Bredesen and his senior staff outlined a plan to remove the sales tax cap on single article sales. At present, the value of individual items over $3,200 are taxed at seven percent. The governor wants to increase this to 9.75 percent.
“Tennesseans are tired of hearing the Bredesen Administration telling them this simply ‘closes a loophole’ or ‘streamlines’ the tax structure. The bottom line is that this proposal is an $85 million tax increase on hardworking Tennesseans,” said House Republican Caucus Chairman Glen Casada. “Small businesses can and will be the driving force behind economic recovery, so we cannot put them in the crosshairs of this massive tax increase.”
The group said the "$85 million tax increase would be in addition to $50 million the administration has called for by increasing taxes on cable television, cable television boxes, business telephone services, and free hotel breakfasts. In total, Bredesen has proposed over $130 million in new taxes this year alone."