Beacon Center of Tennessee » government reform

An Unfair Exchange

editor — Thu, 02 Feb 2012 20:07:51 +0000

Amidst discussions in the state legislature about the implications of setting up a state healthcare exchange under the Patient Protection & Affordable Care Act, the Beacon Center has published a policy insight outlining the myths vs. facts of a state-run exchange. Download the one-page insight at: http://www.beacontn.org/wp-content/uploads/An-Unfair-Exchange.pdf.

An Idea a Day: 51 Ideas for a Prosperous Tennessee

editor — Mon, 19 Dec 2011 19:00:18 +0000

Beacon Center Provides Legislature with 51 Ideas for a Prosperous Tennessee
Pamphlet offers a free market idea for each remaining legislative day of the General Assembly

NASHVILLE – The Beacon Center of Tennessee, founded as the Tennessee Center for Policy Research, today made available in electronic version its most recent publication, An Idea a Day: 51 Ideas for a Prosperous Tennessee. The second of its kind, the pamphlet offers one innovative free market idea for each remaining legislative day of the 107th General Assembly. Each idea is surmised in one brief sentence, followed by a link to original work published by the Beacon Center or contact information for more details.

Hardcopies of the pamphlet will be provided to each member of the General Assembly upon their return to session in January. The electronic version was sent to members and their staff today as the Legislature prepares for the second session of the 107th General Assembly.

“When lawmakers look for solutions that will expand individual liberty, return taxpayers’ hard-earned money to their pockets, and reduce the size and scope of government, they now have a place to turn,” said Justin Owen, the Beacon Center’s president & CEO. “We hope members of the General Assembly will frequently turn to this simple, concise resource as they conduct the people’s business.”

A new feature was added to the second edition of An Idea a Day, with a special emblem marking ideas that will create jobs and/or save taxpayers money. This makes it easier for lawmakers to identify those issues that are a top priority for taxpayers: job creation and tax cuts.

The electronic version of the pamphlet, complete with links to original Beacon Center work on the ideas offered, can be viewed by clicking here or visiting http://www.beacontn.org/wp-content/uploads/An-Idea-a-Day-2012.pdf.

The Beacon Center of Tennessee’s mission is to change lives through public policy by advancing the principles of free markets, individual liberty, and limited government. The Center is an independent, nonprofit, and nonpartisan research organization committed to providing timely free market solutions to public policy issues in Tennessee.

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Beacon urges Haslam to support death tax repeal

editor — Thu, 15 Dec 2011 19:36:48 +0000

The Beacon Center’s president & CEO Justin Owen co-signed a letter today with the Dick Patten of the American Family Business Institute, American’s for Tax Reform’s Grover Norquist, Duane Parde of the National Taxpayers’ Union, and Americans for Prosperity’s Tim Phillips, urging Gov. Bill Haslam to support a repeal of the state death tax. The full text of the letter is reprinted below. Click here to download a PDF version.

Dear Governor Haslam,

We are encouraged, this year, by your leadership and the work of the Tennessee assembly members to promote a friendlier economic environment for Tennessee’s family business owners, family farmers, and their many employees. In particular, we are encouraged by many members who have publicly vowed to work towards eliminating Tennessee’s Inheritance Tax which is a major obstacle to the survival of family owned businesses and farms.

It is true that while serious reforms like eliminating the death tax present short-term challenges, they are necessary steps towards leaving a legacy of economic prosperity in Tennessee and promoting job creation from the most productive sector of the economy – family businesses.

A recent study on the Tennessee Inheritance tax by Laffer Associates states that “Tennessee’s estate and gift tax is the single greatest reason why wealthy people don’t want to live in Tennessee.” For those that continue to operate in Tennessee, the looming Death Tax burden ties up their working capital in expensive estate plans and life insurance policies. Tennessee’s estate and gift tax, the study claims, has already reduced state GDP by up to $18.2 billion over the past ten years. In addition, the robust economic growth resulting from elimination of the state’s inheritance tax, would have added at least $7 billion to state coffers over the last ten years. The tax currently accounts for less than 1% of total state revenues.

The conditions for repeal will never be as favorable as now. We are concerned about some of your recent statements indicating a reluctance to usher through repeal of the Tennessee Inheritance Tax in 2012. We are, however, confident that with your leadership and the support of a very motivated legislature, this important policy measure will be pursued.

Many winning candidates’ top tax issue, and a pillar of your pro-growth platform during the 2010 election, was promoting the complete repeal of the Tennessee inheritance tax. With control of the Governor’s office and state legislature in Republican hands, now is the time to push forward to swiftly eliminate the Tennessee Inheritance Tax.

The state of Ohio recently repealed their state Estate Tax, making Ohio a more attractive place to keep capital and grow businesses. This was a widely reported and nationally touted victory. We strongly encourage you to work towards full repeal of the Inheritance Tax at the beginning of the next legislative session.

Please contact us if we can be of assistance in this crucial effort.

Sincerely,

Dick Patten, President, American Family Business Institute
Grover Norquist, President, Americans for Tax Reform
Tim Phillips, President, Americans for Prosperity
Duane Parde, President, National Taxpayers Union
Justin Owen, President and CEO, Beacon Center of Tennessee

And the winner is…

editor — Mon, 12 Dec 2011 17:02:33 +0000

Liquor Lobby Receives Lump of Coal Award for Thwarting Wine in Grocery Stores

NASHVILLE – The Beacon Center of Tennessee (formerly the Tennessee Center for Policy Research) today announced the Wine & Spirits Wholesalers of Tennessee as the recipient of its 2011 Lump of Coal Award.

The Beacon Center awards this dubious distinction annually to the person or group in Tennessee who, more than any other during the past year, acted as a Grinch to Tennesseans by bah-humbugging the principles of liberty and limited government.

For the first time, the 2011 Lump of Coal Award was chosen directly by Tennesseans in an online poll. Respondents chose from a list of five finalists selected by Beacon Center staff. The Wine & Spirits Wholesalers received the most votes for the not-so-coveted prize, beating out Nashville’s Metropolitan Development and Housing Agency by a single vote.

The Lump of Coal Award goes to the association for its actions to prevent grocery stores from selling wine in the state, a measure that 33 states allow and one that would benefit Tennesseans economically.

“The liquor lobby, led by the Wine & Spirits Wholesalers of Tennessee, has used questionable tactics to scare rural Tennesseans and lawmakers into erroneously believing that allowing grocery stores to sell wine will bring about some type of booze-propelled chaos, all in an effort to protect its powerful monopoly over wine,” said Justin Owen, the Beacon Center’s president and CEO.

“Despite the fact that nearly three out of four Tennesseans want to end the Prohibition-era restrictions on wine, their calls were yet again drowned out by this formidable lobbying force. Maybe the association’s leadership can wash down its lump of coal with a nice bottle of cabernet, purchased exclusively from a liquor store, of course.”

The Beacon Center of Tennessee is an independent, nonprofit, and nonpartisan organization committed to providing free market solutions to public policy issues in Tennessee. Through research, advocacy, and investigative reporting, the Center advances ideas grounded in the principles of free markets, individual liberty, and limited government.

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Farragut earned business-friendly ranking

editor — Sun, 04 Dec 2011 23:43:41 +0000

Justin Owen, president & CEO of the Beacon Center, praises Farragut for its low taxes, strong education results, and job and population growth, leading it to the top of the Center’s 2011 Business-Friendly Cities rankings. This article originally appeared in Sunday’s Knoxville News Sentinel.

by Justin Owen

For the past six years, the Beacon Center of Tennessee (founded as the Tennessee Center for Policy Research) has ranked the state’s 50 most populous cities according to their business climate. The categories we choose reflect cities’ commitment to creating a business-friendly atmosphere based on strong economic vitality and community allure, and free of stifling taxes and restrictive regulatory burdens.

Cities with low tax burdens, less regulation, quality education systems and low crime rates fare better at attracting and retaining business than those with high taxes, burdensome red tape, poor schools and high crime. Since people “vote with their feet,” these factors often lead to population and job growth, which more directly signal a city’s commitment to economic strength.

Each year, cities are ranked by data compiled and placed into three categories: Economic Vitality, Business Tax Burden and Community Allure. These categories included factors such as job and population growth, tax burdens, household income, cost of living, crime rates and education statistics, all important measures for determining how friendly a city is to business growth.

After culling data from various reputable sources, including the U.S. Census Bureau, the FBI and the Tennessee Department of Education, our rankings indicate that the Town of Farragut is Tennessee’s Most Business-Friendly City.

The Knox County city has consistently scored high in the rankings due primarily to its low tax burden — it lacks a city property tax and is the only top 50 city that chooses to impose no gross receipts tax on businesses. It also posted strong job performance, a low crime rate and higher than average median income levels, leading it to a first place finish in 2011.

Four Middle Tennessee cities round out the top five. Brentwood, Franklin, Mt. Juliet and Spring Hill follow Farragut’s lead with low tax rates and positive job growth over the past year.

On the flipside, Memphis finished dead last for the second consecutive year. The Bluff City has consistently failed to address its education woes and has an abhorrently high crime rate. It also imposes a property tax that is nearly 16 percent higher than that of any other city in the state.

Other cities ranking toward the bottom posted similarly high tax rates, low income for residents, and low education results. Taken together, these factors can drive away businesses seeking to expand or relocate.

Cities that want to attract new business development while also nourishing existing enterprise should follow the lead of Farragut by limiting their tax burdens, addressing crime, and maintaining a quality education system. This will attract new residents and thereby business growth regardless of the overall economic outlook.

As Farragut has proven, a city can be business-friendly even during periods of economic malaise. For that reason, the Beacon Center is proud to bestow the town with the honor of being Tennessee’s Most Business-Friendly City in 2011.

Lawmakers seek to require voter approval of tax hikes

editor — Wed, 30 Nov 2011 18:13:06 +0000

The Beacon Center’s Ryan Turbeville talks to Channel 4 News in Nashville about a state lawmaker’s proposal to require voter approval of any local property tax increases that are greater than one percent. Click here to watch the entire interview.

Biz-Friendly Cities report captures attention

editor — Wed, 16 Nov 2011 17:10:24 +0000

The media has extensively covered the Beacon Center’s recent report, How Business-Friendly are Tennessee’s Cities?, since its release earlier this week. Below is a list of the mentions so far on television and in newspapers, with links. Click here to read the release of the report itself.

Nashville Business Journal
Middle Tennessee dominates biz friendly rankings
TOP 10: Most Business-Friendly Cities
TOP 10: Least Business-Friendly Cities
Where are TN’s most (and least) tax-friendly cities

Tennessean
Nashville area cities named most business-friendly

TN Report
TN cities ranked for business-friendliness

WCYB, News 5 Johnson City
New report: Tri-cities not very business-friendly

Memphis Business Journal
Memphis named as Tennessee’s least business-friendly city

Main Street Journal
News for Tuesday, November 15

Knoxville News Sentinel
Farragut named state’s most business-friendly city
Owen: Farragut earned business-friendly ranking

WBIR, Channel 10 (Knoxville)
Farragut named most business-friendly city

WATE, Channel 6 (Knoxville)
Farragut named most business-friendly city in TN

Chattanooga Times Free Press
Survey faults Chattanooga’s friendliness to business
Free Press Editorial Board: Local strengths, weaknesses

WYXI Radio (Athens)
Athens: The business-friendly city

Shelbyville Times-Gazette
City falls in state business study

Farragut Press
Biz Beat
Farragut “Most Business-Friendly” again

Crossville Chronicle
Crossville recognized for business climate

Farragut Shopper
Farragut Shopper News

Hendersonville Standard
Hendersonville named sixth most business-friendly city in state

Business Journal notes Beacon’s position on incentives

editor — Mon, 24 Oct 2011 14:12:14 +0000

In a feature story on state Economic and Community Development Commissioner Bill Hagerty, the Nashville Business Journal takes note of the Beacon Center’s position on economic development incentives. From Friday’s print edition:

”Free market gropus like Beacon Center of Tennessee are pushing [the Haslam administration] to lower tax rates and ditch incentives, calling them wasteful, unfair to other businesses and market distorting.”

Read a summary of the full story here.

Comptroller scolds former Revenue chief

editor — Thu, 20 Oct 2011 19:39:40 +0000

In a recent letter sent to legislative leaders, the state Comptroller called into question the use of “tax variances” by former Dept. of Revenue commissioner Reagan Farr. As noted by Tennessee Watchdog, the commissioner appears to have used his authority to change certain companies’ tax bills in exchange for their promise to invest in economic development in the state. This exposes yet another example of corporate welfare by the state’s former top tax collector. Read the entire story at TennesseeWatchdog.org.

Metro should get off small business backs

editor — Mon, 26 Sep 2011 14:23:45 +0000

Beacon Center’s Justin Owen pens an article in today’s Tennessean that urges Nashville Metro Government to roll back the expansive regulatory environment it places on small businesses and entrepreneurs.

by Justin Owen

Nashville is a thriving Southern city. Tourists and residents enjoy the music, entertainment and other amenities the city offers. One group, however, doesn’t fare so well. Home-based business owners, street vendors and food-truck operators get tangled up in a web of restrictive laws merely trying to earn a living.

Take Pat Raynor, for example. Pat is a widow who had planned to establish a small hair salon inside her remodeled garage. After meeting requirements to start her small business, Pat hit a brick wall. Nashville officials told her that she couldn’t open her salon without breaking the law. A Metro ordinance prohibits home-based businesses from serving any customers at home. The ordinance is one of the strictest in the nation.

Street vendors face their own barriers to success. To become a street vendor in Nashville, one must jump through a myriad of hoops, and that’s only before facing city officials who arbitrarily enforce vague and confusing laws.

One of these unlucky entrepreneurs is Tim Smith, who earns his living selling sunglasses at major events such as the annual CMA Music Festival. Tim takes painstaking efforts to comply with all the laws imposed upon him. Yet, during the 2009 festival, a codes enforcement officer arbitrarily shut down his stand.

The reason? According to Tim, the officer had shut down other stands in the area, and he couldn’t justify letting Tim continue to operate there. Despite breaking no laws, Tim lost $10,000 in much-needed income.

Until now, food-truck vendors were fairly free from the onerous rules imposed upon entrepreneurs like Pat and Tim. This could be why the industry has boomed, with food trucks cropping up all over Nashville.

This has caught the attention of bureaucrats in the Metro Traffic and Parking Commission, who now seek to regulate these mobile entrepreneurs. Interestingly, the biggest backers of food-truck regulations are the brick-and-mortar businesses that compete with these mobile vendors for customers.

This is all too often the case. As if entrepreneurs such as street vendors and home-based business owners don’t have enough to overcome, their would-be competitors team up with overzealous bureaucrats to drive them out of business.

Laws such as those for nuisances and zoning already keep the peace and prevent harm to neighbors and customers alike without putting small-scale entrepreneurs out of work. Additional and unnecessary regulations like those imposed upon Nashville’s home-based businesses, street vendors and food-truck operators should be eliminated unless they directly protect the health and safety of citizens.

These entrepreneurs have a right to economic liberty, to earn an honest living free from arbitrary and needless government regulations. The tough economy is already making life difficult for entrepreneurs like Pat, Tim and thousands of others like them. Nashville government should seek to help, not harm, their chances of success.

Justin Owen is president and CEO of the Beacon Center of Tennessee (formerly the Tennessee Center for Policy Research) and co-author of “A Burdensome Tune,” a report analyzing Nashville’s regulations on local entrepreneurs; www.tennesseepolicy.org.