An Ol' Broad's Ramblings
Death Tax Repeal Moves Out of House Finance Subcommittee
Rep Vance Dennis Newsletter
This week, House lawmakers took a major step towards accomplishing long-time goals of everyone who is concerned about economic growth in Tennessee by advancing two bills that will do away with the death tax in the State and lower the sales tax on food.
For the first bill, the amended legislation includes a full repeal of the death tax phasing it out over the next four years. By 2016, the tax will be completely eliminated. Tennessee is one of only two States in the South with a death tax.
The food tax cut, House Bill 3671, reduces the food tax from the current rate of 5.5% to 5.25% after an amendment was placed on the bill this week by legislators. Representative David Alexander (R—Winchester) was given the responsibility of running the legislation by House Majority Leader Gerald McCormick (R—Chattanooga).
Speaker of the House Beth Harwell (R—Nashville) said, “The House Republican Caucus made repealing the death tax a priority this session because we know it will help family owned farms and small, family owned businesses operate with certainty. I look forward to continue moving it through the General Assembly.”
Ok, getting rid of the death tax is an excellent idea. Not that we have anything to worry about anymore….Obama managed to fix that problem right well with his economic plans. BUT, it has never made a bit of sense to me that the government, on any level, believes it is entitled to the fruits of someone else’s labor during his/her lifetime. That money has already been taxed while the person was still breathing! Just because said person has ceased to breathe does not mean his/her family is should be penalized through taxes.
As for the food tax, well, once again, it has never made any sense. Food is a necessity, NOT a luxury….although if the prices keep going up, it just might become a rare luxury. But let me ask….is cutting the tax on food from 5.5% to 5.25% really going to be saving Tennesseans all that much on their grocery bill? The cost of a gallon of milk, or a pound of butter has risen by leaps and bounds over the last couple of years, much more than that .25% that they would be allowing us to keep of our own money. Now, if they REALLY want to make an impression, cut out the food tax altogether. Ok, maybe that isn’t an answer, but at least cut it by a FULL 1%!
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