Sunday, February 25, 2007

Interesting Daughtrey Tennessean Op/Ed

Larry Daughtrey makes some good points, the best sales tax has the lowest possible rate and the broadest possible base. But talking about "tax reform" without talking about "spending reform" is pretty much useless. Politicians never want to hear the answer from citizens to the most important question about taxes: "How much government do you want?"

"Tax reform" for politicians means "how do we grow the size of government?"

"Tax Reform" for taxpayers means "how do we keep the tax burden low?"


It's really a debate about iceberg tips. Tennessee is still in dire need of tax reform, which doesn't have to mean income tax.

Each year, more than $5 billion in sales tax revenue slips through the cracks of exemptions created by the legislature. That's because the state's tax policy has long been set on the basis of who has the best lobbyists, not fairness.

Basic truths often get lost in the budget shuffle. Tennessee remains a state where cows and horses eat tax-free food; babies don't.