Why TN’s zero-tax street cred comes with an asterisk
This recent Forbes column exposes Tennessee’s income tax secret and notes Beacon’s success in telling the stories of those impacted by the Hall Income Tax.
…But, more importantly, tax policy affects real families and their ability to build a sustainable life. This report, published by The Beacon Center, gives real-life examples of how this little-known tax hurts retirees who have selected Tennessee because of it “no-income-tax” claims. The truth is that the Hall Tax penalizes seniors by creating unexpected retirement expenses. For one middle-class couple who has retired to Tennessee and primarily lives off the income of their hard-earned savings and investments, the Hall Tax came as a surprise. They now are finding themselves with the difficult decision of uprooting to a “true” no-income-tax state, such as Florida. The report also tells the story of a successful Tennessee entrepreneur, Nickolas Holland, who would like to cease collecting a salary from one business while he spends time growing his second business. His choice would be to draw income from his shares of stock from his more stable first company. His plans have been thwarted by the heavy penalty of the Hall Tax. Tennessee has done much to create an environment that is attractive to, and supportive of, its workers, business owners and retirees. In fact, my own home state of Missouri could learn much from our neighbor to the east. Volunteer State leaders should seriously consider putting an end to this “hidden” tax that penalizes seniors and job-creators and prevents future investors.
Read the entire article here.