Monday, November 26, 2007

A State Income Tax in our future?

Link

Inside those budget numbers, Tennessee's tobacco tax collections burned Farr and the governor again. For the third straight month, tobacco taxes did not meet projections. In August, tobacco taxes were $14.1 million under budget. In September, smokin', chewin' and dippin' produced $9.6 million less in taxes than Bredesen hoped. For October, citizens sinned with tobacco $6.1 million less than the state anticipated.

Though the deficit has improved each month and Nashville may someday make its tobacco numbers, Tennessee has taken in only $61.5 million from tobacco taxes against a budget of $91.3 million. The $29.8 million shortfall is almost 33 percent below projections.


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What happens if the economy and F&E collections continue to droop? What if too many people quit smoking and tobacco taxes never cough up enough to pay for Bredesen's school plan? There's always casinos. Or a state income tax.

Whoa! Anybody got a light?