Tennessee lawmakers Wednesday proposed forever banning a new state income tax by writing the ban into the state constitution,
reports the Tennessean.
The state Senate approved a resolution that would prohibit any new income taxes, including a ban on payroll taxes. However, investments would still be subject to state taxes.
State Sen. Brian Kelsey, a Germantown Republican, told the newspaper the measure would permanently eliminate any chance of ordinary income being taxed by the state.
"Not having a state income tax has already brought jobs to Tennessee," Kelsey said. The amendment “will help make us the No. 1 state in the Southeast for
high-quality jobs."
The state House now takes up the issue. If the measure passes this year, it will come up again in the next legislative session that starts in 2013.
A two-thirds majority would then have to approve the income tax ban. If that happens, voters would see the question on the 2014 ballot.
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