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Thu November 29, 2012
Tennessee Could Feel More of a Hurt from the Fiscal Cliff
A tax expert is warning state officials that Tennessee would be among the hardest-hit states if federal officials don't resolve the so-called fiscal cliff. Dr. Stan Chervin says states like Tennessee that depend heavily on sales taxes for revenue would feel the most stress if tax breaks are not extended. The Chattanooga Times Free Press reports Chervin is a senior research consultant with the state Advisory Commission on Intergovernmental Relation.
He says if automatic tax hikes take effect in January, people will spend less and sales tax collections will fall. He notes that about 54 cents of each tax dollar in Tennessee comes from the state sales tax. Tennessee has no broad-based income tax, like most other states do.