Sales Tax

[Kim918]

Originally Posted by 60439

Dena I appreciate your valuable information, but groceries are not cheaper here. That is a misconception. They are equivilant to other areas I have lived. Not higher and not lower, the same. So there is no savings in my opinon on groceries, and most other areas have no sales tax on groceries.

I have to agree with this, at least comparing to Florida. They are exactly the same. Proeprty taxes are way lower though and other things like utilities and car insurance are about half for me so sales tax is really pretty minor against my savings over all.

[Pimpy]

Originally Posted by alleycat

I'm seen varies rankings of states with the highest and lowest taxes. Tennessee usually comes in somewhere around the tenth lowest overall.

Of course, it depends on someone's income and a lot of other factors. The higher their income bracket, the better someone is in Tennessee by not having to pay an income tax (even though the sales tax is high).

Personally, I think the 800-pound gorilla in all of this is the federal income tax. I pay a fairly large chunk in both sales and property tax, but nowhere close to what I pay in federal income tax.

I agree, which is why I support the Fair Tax. Tennessee is a microcosm of what that would be like. No income tax but a flat-rate tax on consumption (a.k.a. "national sales tax").

Everyone I know that has moved to Tennessee from states that carried an income tax is much happier with the tax situation here, even though our sales tax is higher. Why can't the country as a whole take a hint?

[bobtn]

http://www.taxfoundation.org/UserFil...8/maplarge.jpg

Tax Freedom Day by State map, we are one of the earliest!

[bobtn]

Yes , they didn't charge $2.49.

Sales Tax is capped (max county can charge is 2.75%), so highest it can be is 9.75%, and lower on food.

Most state income taxes range from 4-6% for bulk of middle class; in addition, welcome to the land of increbibly low utility bills. Those 2 combined dwarf any diff in sales tax.

One example: IF Taxable Income is $60k, and State Income Tax is 4%, you'd pay $2,400. If state with income tax had 6% sales tax, and your TN avg paid was 9%, you'd be paying 3% more in TN, and would have to spend $80,000 per year in taxable purchases to offset $2,400 in State Income Tax saved. In this example, that means spending on taxable items would need to be 133% of Taxable Income before Sales Tax Increase offset Income Tax saved.