Americans for Prosperity has joined forces with Americans for Tax Reform, the Beacon Center, Senator Mark Green, and Representative Charles Sargent forming a plan to eliminate the Hall Income Tax.
SB 1427 by Green/ HB 1367 by Sargent
Beginning January 1, 2015, annually reduces the rate of the Hall Income Tax by one percent in fiscal year 2015-2016, and one percent annually every year thereafter for a total phase-out over six years.
These reductions are applied only in years that state revenues match or exceed state growth of population plus inflation. These reductions will freeze in years when state revenues do not meet or exceed the rate increase of population plus inflation.
What is the Hall Income Tax?
Enacted in 1929, this regressive tax applies to interest and dividend income received by Tennesseans.
Who does this tax affect?
Seniors own a disproportionate percentage of dividend-paying stocks and are reduced to significantly smaller incomes in retirement as a result. The tax encourages more people to sell stocks rather than begin to draw income from the investments.
Removal of the Hall Income Tax will allow Tennessee to become completely Income Tax Free.