Haslam Proposes Bigger Food Tax Cut

Apr 3, 2012

Tennessee Republican Governor Bill Haslam is proposing a greater reduction in the states' sales tax on groceries as part of his final amendment to his annual spending plan.  Haslam says  he’s included an additional $3.3 million dollars in the budget proposal to drop the state sales tax on groceries from 5.5 percent to 5.25 percent. Haslam's plan is to further reduce the tax to 5 percent in the following year.  The governor also says negotiations with the Tennessee State Employees Association have resulted in agreement over a proposal to dial back civil services laws in the state.  And Haslam adds that increasing the state's daily payment to local jails by $2 a day is designed to help pass his proposal for mandatory incarceration for repeat domestic violence convictions.