According to a study by the nonpartisan Institute on Taxation and Economic Policy, nearly two-thirds of this tax cut would flow to the wealthiest 5 percent of the state’s taxpayers. Taxpayers over age 65 who earn less than $59,000 a year in total income already are exempt from the tax.
The vast majority of Tennesseans would get well under $50 a year from repeal of the tax, the study found, while the richest 1 percent of Tennesseans — those earning an average of $970,000 a year — would take more than $4,100 in tax cuts every year.
Tennessee owns the sixth most regressive tax system in the country. Repealing the Hall tax would make it even more regressive.