posted September 7, 2006
Day in, day out, regardless of what other issues are making news, what really makes Tennesseans mad is the sales tax on groceries, local GOP lawmakers and candidates said Thursday.
“The number of emails I get about the tax on food is just overwhelming,” explained Rep.“Bo” Watson (R-Hixson). “I imagine it’s the same for all of us.”
That’s why when Republican lawmakers and candidates across the state unveiled the second of their "Tennessee Trust" public policy announcements on Thursday, they focused most of their attention on finding ways to reduce the tax on groceries.
During an afternoon press conference, held appropriately at the Bi-Lo grocery store at the foot of Signal Mountain, GOP leaders from this area pledged to work during the upcoming legislative session to find ways to make it feasible to cut the tax on food. Further, they said, they will work to reduce government waste and continue to oppose the adoption of an income tax in Tennessee.
In addition to Rep. Watson, speakers included Reps. Gerald McCormick (R-Chattanooga), Vince Dean (R-East Ridge) and Eric Watson (R-Cleveland). Republican candidates Richard Floyd, District 27, and Jim Cobb, District 31, also were present.
The “Tennessee Trust” – loosely based on the "Contract with America" which is widely credited with helping the GOP take control of the U.S. Congress in 1994 – is part of a strategy aimed at helping Volunteer State Republicans win a majority of the seats in the senate in Nashville.
Party leaders also hope to cut into the Democratic majority in the state house of representatives.
The GOP lawmakers pledged to:
• Reduce the sales tax on groceries, and earmark 5 percent of the estimated $800 million more collected from Tennessee taxpayers last year than was originally predicted to make up the resulting shortfall in funding.
• Strengthen the Copeland Cap, a 1978 amendment to the state constitution that prohibits legislators from increasing spending faster than Tennessee’s economy is growing.
• Fight any proposal to enact an income tax in Tennessee.
Mr. Floyd said that Tennessee collected $387 million more in taxes last year than was originally projected, including about $104 million that has not yet been spent. When that amount is combined with projected growth in taxes during the coming year, it equals almost $800 million more in tax revenues than officials originally expected to collect, he said.
The state already has fully funded its rainy day fund, according to Rep. Watson. “We believe we should look for responsible ways to return some of the money, like reducing or eliminating the sales tax on food.”
“With the increase in energy prices, every penny helps,” Rep. Watson added. “By reducing the sales tax on food by even a small amount, we can help Tennesseans save money on items they have to have.”
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