Capitol Hill Weekby Senator Mae Beavers
The Senate voted 28 to 5 this week to approve a “No State Income Tax” amendment resolution to Tennessee’s Constitution. If voter agree, the proposal would clarify that an income tax and a payroll tax are prohibited by the Tennessee Constitution.
Tennesseeans do not need an income tax. I am a prime co-sponsor of Senate Joint Resolution 18 which specifies that the legislature as well as Tennessee counties and cities shall be prohibited from passing either an income tax or payroll tax, which is a tax on employers measured by the wages they pay their workers. A payroll tax has been proposed as a way around an income tax.
The most serious attempt to pass a statewide income tax was in 2002, when the proposal received 45 of the 50 votes necessary for passage in the House of Representatives. Last year, eight state lawmakers co-sponsored legislation to implement a state income tax.
Not having a state income tax has already brought jobs to Tennessee. Being able to tell prospective businesses that we will never have an income tax will help us recruit jobs as we compete against other states in the Southeast for high quality jobs.
In order for a constitutional amendment to pass, it must first be approved by a simple majority in both the House and the Senate this year. Then, it must be approved by a two-thirds vote in each chamber during the next General Assembly in 2013-2014. After that the amendment would be placed on the next gubernatorial ballot for ratification by the people in November 2014.
I am very pleased this resolution has finally passed. When approved by the voters, it will put this issue to rest once and for all.
Health Freedom Act goes to governor – In other major action this week, the House of Representatives passed and sent to the governor legislation I am sponsoring with Rep. Terri Lynn Weaver (R-Lancaster) to allow Tennessee patients to make their own health care choices regardless of the federal action taken in Washington last year. We passed this bill through the Senate last year but it stalled in the House of Representatives.
Senate Bill 79 does not seek to “nullify” any federal law, as it would allow individuals the option to participate in a federal program. However, it acknowledges the right of Tennesseans to refuse to participate in a government-run health insurance program. The legislation, called the Tennessee Health Care Freedom Act, seeks to protect a citizen’s right to participate, or not participate, in any healthcare system in Tennessee, and would prohibit the federal government from imposing fines or penalties on that person’s decision.
We are talking about stiff penalties that will escalate to 2.5 percent of a citizen’s taxable income by 2016 if they do not purchase health care insurance. This is will put a heavy burden on citizens who are already struggling to make ends meet. I am very hopeful this legislation will pass our General Assembly this session.
The health care law passed by Congress last year is ‘big brother’ at his worst. The citizens of Tennessee believe they should be able to choose whether or not they want to participate in a federal health care plan. That is what this bill seeks to accomplish.
