Marc Gravitt, Republican candidate for Tennessee House District 30, praised the announced state legislation to eliminate the Hall Tax. Established by the Tennessee General Assembly in 1929, the Hall Tax is the only income tax the state of Tennessee imposes on personal income by taxing the interest and dividend income from investments and saving funds of Tennessee residents.
"This is exactly the type of good government our citizens want and deserve," Mr. Gravitt said.
"Taxing the interest on the investments and savings of Tennesseans only discourages people from saving for retirement. By eliminating this progressive tax, Tennessee will become a more attractive home for retirees as we are no longer penalizing seniors who have scraped and saved for their future and live on a fixed income derived primarily from investments."
Senate Commerce Committee Vice Chairman Mark Green, R-Clarksville, and House Finance Committee Chairman Charles Sargent, R-Brentwood, held a press conference today in Nashville announcing their joint efforts to gradually reduce the Hall Tax over a period of six to seven years.
"This legislation will remove the double taxation from citizens who save and those who invest," said Rep. Sargent.
Senator Green said the Hall Tax up to this point has been a disincentive for citizens who save and invest, saying, "The Hall Tax is a punishment against thrift and a penalty for investment."
Joining Senator Green and Rep. Sargent were Tim Phillips, president of the Americans for Prosperity, and Grover Norquist, president of Americans for Tax Reform.
"If you want to know where good things are happening, you have to look to the states," said Mr. Norquist. "Tennessee will now be a non-income tax state."
Mr. Phillips said, "There is a genuine economic freedom revolution at the state level. Tennessee is removing this double taxation from those who invest and save."
The current rate for the Hall Tax is six percent, which is applied to all taxable interest and dividend income.
"Tennesseans who have a retirement plan with mutual funds and stocks will benefit from the elimination of the Hall Tax," said Mr. Gravitt. "As a conservative, I strongly encourage the Tennessee General Assembly to support this important legislation that will eliminate Tennessee's last remaining income tax. Our state is ready for this change and ready for the economic liberty it will bring."
Mr. Gravitt is seeking the GOP nomination for the Tennessee House seat for District 30. The state primary election is Aug. 7, and early voting runs from July 18 to Aug. 2. The general election for this state office will be held on Tuesday, Nov. 4.