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.”

Amazon: The World's Leading Tax Cheat

Business Insider has this article calling Amazon the leader of the Tax Cheat Industry:
Amazon is known throughout the world as one of the most innovative tax cheats anywhere. It makes its profit largely by allowing customers to avoid state sales taxes and sharing the savings. States are now taking steps to crack down on this scam, requiring Internet retailers with any ties to in-state businesses to start collecting taxes on their sales in the state. California took this route this month.
The NYT had an article highlighting Amazon's efforts to fight back to protect its loophole, which includes a plan to place an initiative on California's ballot. In laying out Amazon's argument, the piece includes an unanswered argument from Amazon, that the law places a huge burden on small Internet retailers by requiring them collect taxes in hundreds of different jurisdictions.
The piece should have reminded readers that there are services that will handle the tax collection for smaller businesses for a modest fee. These services are comparable to the payroll companies that small businesses often rely upon to get tax and benefit payments handled correctly.
Amazon has a history of putting out absurd arguments to protect its tax loophole. It had previously argued that it lacked the technical competence to keep track of the different tax provisions in all the jurisdictions where it sold products. This argument was contradicted by the fact that retailers like Wal-Mart and Target seem to have relatively little problem getting tax collections mostly right. Presumably, the programmers at the these traditional brick and mortar retailers are not that much more competent than the crew at Amazon.
Given Amazon's history, the NYT should not present its claims to readers without including a response.

11 Things the Richest U.S. Households Could Buy (You'll Be Shocked)

From our friends at United for a Fair Economy:

The wealthiest families in the U.S. are sickeningly, obscenely rich, to the tune of $1.37 trillion dollars. And unlike the rest of us, they don’t have outstanding medical bills or student loans, trouble paying credit card debt, or live paycheck to paycheck.

So how much is $1.37 trillion dollars? To demonstrate just how much money this is, here are 11 things that the richest 400 households in the U.S. can buy with their "hard-earned" cash:

The richest 400 households can pay off every student loan for every single student in the entire United States. No more paying for an education, so that you can get a good job so that you can... well, pay off your education.
The richest 400 could pay your rent, and the rent of every single renter in the entire United States for three years.
The richest 400 could pay the mortgages of every house in the whole country for 14 full months.
The richest 400 households can buy every single house that was foreclosed on in 2007 and 2008.
The richest 400 households could pay the annual salaries of 19 million families for one year. So go ahead, take that year-long, family vacation around the world you’ve always dreamed of.
The richest 400 can pay off all credit card debt for every single person in the entire United States. Imagine that! No more credit card debt looming over your shoulders!
The richest 400 households can afford to give a $10,000 bonus to every single worker in the entire country. What would a hardworking person like you do with that extra money?
The richest 400 can afford to buy a new car for every family in the United States. Meanwhile, many of us must ignore the flashing check engine light.
The richest 400 can pay for 3 ½ years worth of gas for every driver in the country.
The richest 400 households can afford to triple the number of teachers in the United States, then give every single one a $30,000 raise. Teachers are being laid off everywhere, their salaries are being cut, and they are suffering. Teacher-to-student ratios in schools are abysmal. But what can we do about it when so much wealth is in the pockets of so few families?
The richest 400 families alone could replace 70% of all money lost in the Great Recession, for everyone! How much money did you, your parents, or grandparents lose in the Great Recession of 2008? 30%, 50% of your portfolio? Not only do the rich still have enough money to fund their wildest dreams, but they can also fund your retirements.

As you can see, the wealthiest families in the U.S. are doing just fine. And with this money has come a great deal of political influence, often in the form of tax breaks and tax loopholes. Their influence on policy has made it easy for the rich to stay rich [and get richer].
To see the full article, go here