The Memphis Daily News: Eliminating Hall Income Tax Raises New Problems

While Tennessee depends primarily on sales taxes for state revenue, the Hall tax was projected to bring $260 million into state coffers in fiscal 2014, about $98 million of which would go back to the local governments where those taxpayers live.

That revenue would disappear, and 63 percent of the tax cuts would go to Tennessee’s wealthiest 5 percent, while 23 percent would go to the federal government, according to a 2014 report by the Institute on Taxation and Economic Policy, a nonprofit, non-partisan think tank.

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