Reality Check

If you had to name the biggest crises facing America what do you think it would be? Children and elderly in poverty? Climate change? Wealth Disparity? Foreclosures? Crime? Depletion and exploitation of natural of our resources?

Well, if you guessed any of the above you would be wrong, dead wrong. See according to Presidential hopeful Rick Santorum, the #1 crisis facing America is OBAMACARE.  *Gasp!* Yes, that's right folks, access to affordable healthcare is threatening America.



I know, take a minute to regroup and prepare yourself for the second most pressing problem facing America. (Maybe sit down or hold someone's hand for support before you continue reading.)

The number TWO problem facing our great nation according to the great Rush Limbaugh is young, single, over-educated white women. Oh my! What are Americans to do in light of such heinous horrors bearing down on us?  Perhaps Santorum and Limbaugh will form a charity to offer free lobotomies to all these snooty single women? One can only hope!

Certainly, I'm being a bit tongue-in-cheek about all of this, but honestly these two fellows are just plain sad. Obviously there are many important issues that America needs to tackle without inventing problems and realities.

Now, I know that this blog is Tennessee- centric, but I bring these issues up here because A,  Tennessee went Santorum in the primaries and B,  Limbaugh is without reproach to too many of our state's residents and political leaders.

Tennessee's state legislature is the most obvious demonstration of bizarro-land ideas. During a time when Tennessee faces record deficits, huge job losses, increasing crime rates, high rates of poverty and homelessness (particularly among children and elderly), Tennessee legislators chose to deal with OTHER non-reality issues. I offer the following as examples of Tenneessee's nuttery:

• Bill passed to allow guns in parks and bars. - (Uh, that's creating a problem NOT solving one.)
• Proposal to create a TN State currency  - (in case we decide to secede again?).
• Bill proposed and passed 1st round of voting to ban an Income tax in TN. - (Smart! Ban the ONLY remedy for the state's perpetual budget deficits.)
• Ban teachers from discussing GAY, ever in any context at school. - (Ugh, barf, bigotry.)

Okay, I have to stop at 4 examples or my head will explode.

Freedom!

Meanwhile legislation that would actually solve real problems gets shot down or never makes it out of committee. Priorities people! 

My point in all of this is to highlight the absurdity of what is really going on here. Obviously, access to quality healthcare and an educated citizenry are good things that should be supported by everyone. There are real problems facing this country and this state and it would be nice if our political leaders in Tennessee would tackle them instead of inventing new ones.

Tax Day and Brats

  Every year at tax time, like clockwork, someone berates the Government for "taking my hard-earned money." It's an old trope and I'm tired of hearing it. Personally, it calls to mind a whiny, bratty child who doesn't want to do his or her chores. This mentality, that of a spoiled child, is in my opinion at the heart of most tax debates in this country.


  A major contributer to this nonsense is one Grover Norquist  who has been able to get 95% of all Republicans to sign his "Tax Payer Protection Act," which states:

• ONE, oppose any and all efforts to increase the marginal income tax rates for individuals and/or businesses; and
• TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates.

In effect, Grover decided that the best thing for America, for Americans, for his ego, wallet and party is to simply stop raising taxes -  for any reason - ever. His reasoning for this is to establish a clear line of demarcation between the "tax and spend Democrats" and the "fiscally responsible Republicans." 

Poor Grover.

Of course Democrats have often proven themselves to be much more fiscally responsible than their "conservative" counterparts. Take President Clinton and President George Bush, Jr. for example.  One ended his term with a surplus, the other with record-breaking debt.  All facts aside, Mr. Norquist and his party beg to differ.  


 Grover's genius plan for our entire economy was hatched when he was merely 12 years old. Child prodigy? I think not. Spoiled brat? Probably.  Weird? No question.  


  In effect the Republican's inability to take any action to rescue the economy is due to the whims of a 12 year old. Not just any 12 year old, cause most kids are pretty cool, but a spoiled, bratty kid who has no clue or care about the suffering of the real world. 

  Grover is not alone in his spoiled mind-set, as too many people agree with him. This ideology is espoused every time someone attacks welfare, poor people, the sick, the jobless and so on. For instance, South Carolina Lieutenant Governor André Bauer equated impoverished children with stray cats and urged people not to feed either so they would just go away, presidential hopeful Newt Gingrich wants poor children to clean school toilets to earn their keep and the state of Florida has started drug testing all (poor) folks who get government assistance in an effort to reduce government spending shame them. 

  The reasoning behind these reprehensible ideas is that if you are not wealthy, and I mean making upwards of $200,000 a year, then you are lazy, worthless and probably stoopit.  After all, what does a wealthy, white, insulated, old man 12 year old  know about suffering due to lack of money, discrimination, hunger, and so on? Nothin'. 

  Ultimately, the facts are these: The United State is the 3rd lowest taxed nation of all industrialized nations. If one breaks it down further, Tennessee is one of the lowest tax states in the country. With these low taxes the people buy protection in the form of air traffic control, police, military, firefighters, food and building regulations and more. The people buy sewer systems, electricity grids, roads, the justice system, parks, street lighting, garbage pick-up, public schools and universities and SO MUCH MORE. The people of the US are getting a pretty good deal for their tax dollars. In fact, some can argue (and I usually do) that we should have more and better. Tax loopholes need to be closed so that major corporations like GE, BOA, and AIG who paid no taxes at all pay their fair share. Tax rates need to be progressive and NOT regressive so that the Mitt Romneys of the world pay at least as much in taxes as his secretary does. Also, tax rates on the wealthy need to be raised in general so that taxes aren't the sole responsibility of the waning middle class. 

  Of course there is no doubt that there are many fixes that our federal government and state government need to employ regarding taxes, but the answer is certainly not to just stop raising taxes. That makes no sense. I can't decide one day to stop paying the increases on the things I buy like food, energy or clothes. I can't say to my local grocery that I will only be paying last year's prices for bread forever.  It just doesn't work like that in the real world. 

  But, of course I am an adult. I am no longer the "dreamer" that I once was at 12 and have therefore let my go of ideations of mandatory pizza party Wednesdays for everyone. At any rate, I'm happy to pay my taxes. I know that I have contributed my part to pay for all the things that make our country great.  Oliver Wendell Holmes once said: "I like paying taxes. With them I buy civilization." Yep. 

  Grover and friends, on the other hand, are tedious, spoiled, insufferable people who never grew out of their tantrum phase. They are the Veruca Salts of the real world and they are spoiling everybody's good time. So to them I say "GROW UP."

Sorry, Veruca you deserve better. 

Tennessee Tax Talk with that Tea Party Uncle of yours:

How to navigate that awkward conversation as a Tennessean for Fair Taxation

Tomorrow, after the turkey is eaten and everyone a glass of wine or two deep, a lesser-known Thanksgiving tradition will inevitably present itself: the political argument. TFT is here to help you be both a peacemaker and a social justice warrior at the table.

· Always remember what’s really important.

Focus on your shared values, not differences. You don’t want a sensitive aunt to end up crying into her pumpkin pie. Regardless of your differences, respect your family’s right to their opinion and always avoid insults.

· Know the facts, but avoid preaching

You don’t have to memorize TFT’s website, but it is helpful to have some facts on hand for defusing situations. Always remember not to get caught in semantics or studies from opposing studies you’ve both heard, rather, try to steer the conversation to a larger picture. For example:

Uncle Jerry: If Tennessee had an income tax, I’d be clean broke!

You: Actually, most working Tennesseans would see a tax cut under a progressive, broad-based income tax structure. I think we can both agree that people who work everyday need a break – a strong middle class is what this country really needs.

· Know your position, but be open to listening to others.

Before you have that conversation, ask yourself why you support TFT. You may be surprised to learn that your answers are very universal. For example, you may support TFT because you think food is an essential human need that should never be taxed, or you might believe that those who benefit from society the most have a moral obligation to support it the most. You might believe that the poor and working class deserve to pay the same percentage in taxes as the rich, (not more), or you may believe that children of all socioeconomic backgrounds in Tennessee deserve a better infrastructure for their future. Whatever your reasoning is, listen to others without judging. Example:

Your father-in-law: You donate to TFT?! I didn’t know you were a communist!

You: Actually, I donate to TFT because I want to support the work they do to take the taxes off food - everybody eats, and I don’t think anyone should take advantage of that.

· Steer clear of buzzwords and bumper sticker slogans.

Class warfare, the one percent, godless society, out-of-control spending, Obamacare, Horn-honkers, liberal/conservative media, welfare state, and the war on terror are all words not to say. Why? Because they invoke a well-designed emotional response which will derail the conversation. Instead, focus on real issues with your own words. For example, although it looks great on a sticker, yelling “Feed the needy, not the greedy!” at the dinner table won’t win you as much support as saying, “Our elected officials in Tennessee will need to take the tax off food and find additional revenue sources if we want to give everyone a chance at a better future and a delicious meal like this one. Thanks, Aunt Patty!”

· Remember that you have support from your TFT family, too.

We love to have conversations about Tennessee taxes! If you hear a good point and would like clarification, if you have a question, or would just like to reenact that argument with your in-laws, give us a call or post on our facebook wall! We want to hear from you. We work everyday for the betterment of the state tax structure, and we’re proud that you’re representing us well within your circle. Thank you!

And while you’re at it, you can make a TFT donation in your Uncle’s name – we’ll even send him a thank-you card acknowledging your contribution.

TFT wishes you a safe, happy, and harmonious Thanksgiving. We have so much to be grateful for; thank you for your support and dedication to revenue with justice.

Op-Ed on Occupy Nashville

Occupy Nashville can wear on you.

Even the strongest-spirited activists find that body, mind and soul are routinely pummeled in the camp and in the physical and online community. Every level of participation is affected: people who live in the camp, people who follow it online, and people who, like myself, work a full day and go to the plaza to spend the evening.

I am fortunate enough to spend my days working for economic justice for the state as an employee of Tennesseans for Fair Taxation and, when I’m off the clock, for the country as an Occupy Nashville participant. I was fortunate enough to be able to stand up for the First Amendment rights of us all as we were arrested Oct. 28 for our occupation of Legislative Plaza.

Fortunate as I am, in my time with the movement, I’ve seen breakdowns in communication, judgments made in poor taste, and validity to the state’s concerns regarding safety and sanitation issues from people disconnected from the movement but nonetheless taking residence upon War Memorial Plaza.

To someone from the outside looking in, it may seem that our ideals are noble but the practice is flawed; these may be the same people quietly applauding the Nov. 14 clearing of Zuccotti Park in New York City, or even perhaps the ones who did the clearing themselves.

To these people, my message is this: it takes no courage to convince yourself that you hold the key to solving socioeconomic problems in the U.S. and would use it if given the chance. It does take courage to attend Occupy Nashville’s General Assembly with humility and a heart for growth, wait your turn to speak, listen to others, and reach a decision. The process is complicated and oftentimes imperfect, yet the protesters regard each other as family, and even the stickiest issues are resolved with cooperation and compromise.

Mutual respect is beautiful in theory and breathtaking in practice. Since October 6, Occupy Nashville has been actively practicing it, every weeknight at 7 p.m. and every Saturday and Sunday at 1 p.m. If you’re unsure, if you’ve seen our marches on the news or outside of your office window, if you’ve looked curiously at the signs at Legislative Plaza, if the mere mention of the words “Occupy Nashville” strike you with offense or loathing, or even if it was your decision to arrest us (I’m looking at you, Governor Haslam) I encourage you to come. Come to General Assembly. Wait your turn to speak. Listen to others. Be a part of the solution.

Whether or not you’ve already visited Occupy Nashville, you’ve been in our situation. Your body is aching, your mind is begging for rest, and your soul is tired from saying to the two: “Don’t give up. Hold on.”

With the complications of the movement, the ongoing values are the driving force. I will work for the movement so that my children will not know a world where their elected officials place value of money over value of human lives. I will work to restore civil servitude. I will work to redefine the values in our larger culture. And I don’t care how long I have to sit on that cold marble to do it.

A Closer Look at Income and Tax Inequality in Tennessee

The Occupy Wall Street movement is gaining steam daily. The statistics regarding income inequality in the U.S. to which the movement has brought attention is staggering to say the least. These statistics got me thinking: what do the top earners in our state make and how does that translate to the regressive tax system in Tennessee?

Statistics regarding income in Tennessee are sparse at best; I found the most detailed statistics regarding income inequality in Tennessee on the IRS website from their most recent 2004 report. What the data from the report shows is that the top 2% of households in Tennessee have an adjusted gross income of $537,000 per year, compared to the average $19,500 adjusted gross income for the most populated under $50,000 tax bracket. Indeed, 74% of Tennesseans fell in this lowest tax bracket. The percentages of Tennesseans in the other tax brackets were as follows:

• $50,000-$75,000: 13%


• $75,000-$100,000: 6%

• $100,000-$200,00: 5%

• $200,000 and up: 2% (the top two percent mentioned above as earning a mean of $537,000)

The spreadsheet to which I am referring for these statistics can be downloaded here.

Keep in mind that the income gap has likely grown since 2004, since total income in Tennessee has increased since then (as shown by the chart below), while the median household income in Tennessee has not experienced much change.

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Now, what does this say about the way Tennessee taxes its citizens? Well, quite simply, it says it is backwards. For instance, the 74% of Tennesseans in the lowest tax bracket are likely spending every last dime of their income, and 70% to 80% of this income is spent on taxable goods and services.

On the other hand, those in the top two income tax brackets (7% of Tennesseans) only spend about 20% to 30% of their income on taxable goods and services.

Put simply, this equates to a tax system where tax rates go down as incomes go up--a regressive tax structure. It is unfair to ask the average Tennesseans, the 74%, to carry the tax burden; this burden should be shifted to those who can afford it--the top 7%. This could be accomplished by implementing a state income tax which would therefore allow the state to drastically reduce our sales tax rate, one of the highest in the nation, and eventually eliminate the sales tax on food, also one of the highest in the nation (not to mention Tennessee is only one of a handful of states who even tax food).

Please join us in our fight against regressive taxes in Tennessee by taking action. Also, follow us on Facebook to stay updated on our fight for fair taxation in Tennessee.

TFT has been BUSY!

Amazon victory and much more! Check out the video below for more.

The Amazon Discussion

We've had a lot of great conversations with members and the public recently about the Amazon issue. Some of our members don't understand why we would fight the job creation - TFT wants new jobs for Tennesseans. But the jobs Amazon creates could provide an unintended consequence statewide when thousands more lose their jobs as a result of local employers closing their doors because they can't compete with Amazon's unfair tax advantage.
Others question why we would advocate for any kind of additional sales tax. The fact is that Internet sales are legally required to be taxed when the vendor has a physical presence in Tennessee. This applies fully to Amazon's distribution centers in Bradley County and Chattanooga and to the proposed fulfilment center they announced today they plan to build in Lebanon, TN.
Until we can reduce the general sales tax and eliminate the tax on food, legally obligated tax revenue must be collected to avoid further cuts in health care, public services, and education. Shoppers who buy on Amazon.com must have a credit card, a physical address, and access to a computer and the Internet - these tend to be shoppers who are not low-income. If these purchases (that are likely not basic necessities) are exempt from sales tax, that's one more disadvantage handed down to low-income shoppers in Tennessee.
It's not fair to our local businesses who must collect the sales tax. It's not fair to those impacted when jobs and services are cut and lost because of a lack of state revenue - revenue that Amazon sales taxes could more than cover for the state.
This article from TN Report says it all:
- Dr. William F. Fox, director of economics at the University of Tennessee’s Center for Business and Economic Research, joined North Carolina’s secretary of Revenue, David W. Hoyle, in a presentation, and the message they brought was that Amazon has managed to create an uneven playing field and that Internet sales in general are having a huge impact on state revenues.
- Fox said his center’s research estimates the total of e-commerce is about $4 trillion, with about $46 billion in taxes due across the nation. He said most states surveyed are going to lose about $200 million or more this year due to uncollected taxes on e-commerce.
- “As we move from people who buy on Main Street, and they move to buy from Amazon because of the tax subsidy that is implicit in the way we pay, we cost the economy four jobs,” he said.“This is not a little issue. It’s not a small concern,” Fox said. “They don’t need a subsidy to operate. E-commerce associated with business-to-consumer sales this last year grew 18 percent, while commerce on Main Street essentially grew zero percent.”