Tax Guru-Ker$tetter Letter
Saturday, August 03, 2002
Anti-Tax Message Resonates With Voters
I do relish the opportunity to point out the few bits of good news that occasionally appear. As some of you may know, there has been a big fight over the past several months in one of the states that doesn't have an income tax, Tennessee, to start taxing all kinds of income. There have been near riots at some of the rallies involving this issue.
Last Thursday, TN had its primary election. While the issue of implementing an income tax was not explicitly on the ballot, it was implied in many of the candidates' platforms. The excellent news is that many of the incumbents and candidates who have been advocating the income tax were defeated.
I have always wondered why more candidates haven't used an aggressive tax cut as a main rallying point. Mr. Viagra's (Bob Dole) impotent 1996 campaign promise to cut everyone's taxes by a whopping fifteen percent doesn't qualify.
As a point of accuracy, I do want to clarify the true income tax status of TN. While almost all kinds of income are not subject to a State income tax, there is a six percent tax on interest & dividend income above $1,250 per person ($2,500 per married couple) per year.