Last week, Tennessee taxpayers scored a significant victory when the state’s General Assembly passed a bill to phase out the levy on investment interest and income. National Taxpayers Union (NTU) wants to thank Senator Mark Green and Representative Charles Sargent as well as the Beacon Center for their valiant effort to finally make Tennessee a truly income tax-free state.
As the Beacon Center noted, more than half of the tax was paid by people earning less than $75,000 per year. This common sense legislation will make the Volunteer State a more attractive place to start a business or raise a family. Recent efforts in Tennessee and North Carolina should spur states especially in the southeast to think seriously about enacting pro-growth fiscal policies to remain competitive in an increasingly global economy.