Tennesseans For Fair Taxation - Counter Argument

Counter Argument

The counter-argument is made by groups such as Tennessee Tax Revolt, Inc. First, that the overall burden of taxation imposed by all levels of government, including the federal government, shows that poorer Tennesseans, like poorer Americans in general, pay a lower share of their income in taxes overall than wealthy ones. They add that the portion of food purchased by persons using food stamps, which covers at least part of their groceries, is automatically tax-exempt. Further, they argue true "fairness" is epitomized by the sales tax, which is the only tax which directly affects persons who work in the so-called underground economy which is driven by cash. Hence it represents the only tax paid by undocumented aliens, drug dealers, pimps and prostitutes. Of course, people can also avoid the sales tax buy buying things under the table with cash. They further point out that Tennessee does impose a flat income tax of 6% on dividends and some interest. This income tax is paid almost entirely by more affluent Tennesseans, since the first $1250 of such income, and all such income from bank interest payments, is exempt.