“While several Republicans reveled in the effort to cut the tax, the Institute on Taxation and Economic Policy criticized their efforts, saying the majority of Tennesseans will see no financial benefits.
“The Hall Tax plays an important role in offsetting the otherwise regressive impact of Tennessee’s tax system,” Dylan Grundman, a senior analyst at the Institute on Taxation and Economic Policy, said in a statement release on Tuesday. “Overall, the state’s tax system captures a greater share of income from low- and middle-income people than from the wealthy, but the Hall Tax is one of the few taxes that runs counter to that trend.”
Grundman said state and local revenues could actually see a loss of $58 million in the first year of the cut, which could result in residents paying higher property taxes if localities are forced to take action in response to the Hall income tax cut.”
While several Republicans reveled in the effort to cut the tax, the Institute on Taxation and Economic Policy criticized their efforts, saying the majority of Tennesseans will see no financial benefits.
“The Hall Tax plays an important role in offsetting the otherwise regressive impact of Tennessee’s tax system,” Dylan Grundman, a senior analyst at the Institute on Taxation and Economic Policy, said in a statement release on Tuesday. “Overall, the state’s tax system captures a greater share of income from low- and middle-income people than from the wealthy, but the Hall Tax is one of the few taxes that runs counter to that trend.”
Grundman said state and local revenues could actually see a loss of $58 million in the first year of the cut, which could result in residents paying higher property taxes if localities are forced to take action in response to the Hall income tax cut.While several Republicans reveled in the effort to cut the tax, the Institute on Taxation and Economic Policy criticized their efforts, saying the majority of Tennesseans will see no financial benefits.
“The Hall Tax plays an important role in offsetting the otherwise regressive impact of Tennessee’s tax system,” Dylan Grundman, a senior analyst at the Institute on Taxation and Economic Policy, said in a statement release on Tuesday. “Overall, the state’s tax system captures a greater share of income from low- and middle-income people than from the wealthy, but the Hall Tax is one of the few taxes that runs counter to that trend.”
Grundman said state and local revenues could actually see a loss of $58 million in the first year of the cut, which could result in residents paying higher property taxes if localities are forced to take action in response to the Hall income tax cut.
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