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NASHVILLE, Tenn. Governor Bredesen says the state would have a fiscal crisis if the tax on groceries is phased out without a way to replace the lost revenue.A measure co-sponsored by all 17 Republicans in the Senate and 20 Republicans in the House would drop the state's six percent food tax by half a percentage point each year until it is eliminated in the budget year beginning in 2018.Bredesen said in a speech today that it would knock a hole in the state budget.
He also said it could be a ploy to get support for an income tax as a replacement.
An income tax proposal spearheaded by then-Governor Don Sundquist, Bredesen's Republican predecessor, failed after years of emotional debate.
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