More than 500 people took the AFP-Tennessee poll asking if they supported exempting Amazon from collecting the states sales tax. Of course this is not scientific, but over 77% of respondents supported the exemption for Amazon, with 18% opposing the exemption and a bit over 4% being undecided.
To flesh out exactly what the poll meant, we asked participants to e-mail their comments, and explain their opinion. The overwhelming responses in favor of the exemption centered around anti-tax, supporting Amazons job creation and honoring the deal between Amazon and former Gov. Bredesen.
Conservatives in Tennessee view Amazons collection of the state sales tax for online purchases as nothing more than a new tax. Viewed in the same vein as the struggle to protect Tennessees workers from a state personal income tax, Volunteers are committed to keeping taxes low and preventing Nashville from instituting new taxes.
While other states are struggling mightily to bring their budgets into the black, Tennessee has a balanced budget and a revenue surplus greater than $20 million to close out the fiscal year.
In the midst of what many economists are calling a double-dip recession; when seemingly no government, family or business is enjoying economic growth, how is it that Tennessee has a surplus?
Dr. Arthur Laffer and ALEC (American Legislative Exchange Council) recently published the 4th Edition of their popular Economic Competitiveness Index, titled Rich States, Poor States. True to the authors backgrounds as renowned economists, the index paints a statistical picture of connect-the-dots, explaining why states like Tennessee are succeeding, and states like Michigan are not.
State government sent a delegation to New York this week to demonstrate that in light of the recent downgrading of the federal governments rating, Tennessee deserves to retain its AAA rating.
States with high numbers of government employees and contracts which if youve ever driven by Oak Ridge you know Tennessee is one are at risk of being downgraded for their heavy reliance on federal funds.
Tennessee deserves to keep its AAA rating:
Tennessee has a balanced budget
Unlike the federal government, Tennessee must keep a balanced budget. We have our fiscal house in order and did it by cutting spending. The state cut spending overall by 5.6% compared to current operating budgets. Along with meaningful reductions in spending, Governor Haslam instituted merit pay reform, incentivizing state employees to find efficiencies. This program will find greater savings in the long-run for taxpayers and keep costs down.
Often merit pay in the public sector is a shell game. While liberal interests and government employee unions fight tooth-and-nail against pay-for-performance reforms, should the reforms be enacted it is generally expected that all employees will receive decent reviews, and thus be rewarded with a merit salary increase.
In public administration theory managers do not generally give negative reviews to employees, because there is a tension to not replace the ineffective employee but in the era of skimp budgets there is a tendency to eliminate positions. Thus, to save their departments budget and staff positions, managers tend to rate all employees positively.
Yet, Tennessee has demonstrated an effective system for evaluating employees and rewarding hard work does exist in state government.
It is a tremendous victory for free market activists that, for the first time in history, the debate over raising the debt limit became a debate over cutting spending. For that, we should be heartened that our efforts are truly making a difference. But we must continue to fight, because this deal is simply inadequate to the size of the fiscal challenge our country faces.
Ratings agencies have consistently called for at least $4 trillion in cuts to avoid a downgrade -- and rated the Boehner and Reid bills on which the final deal was based as inadequate for putting the country on a sound fiscal footing. This deal includes only $0.9 trillion in guaranteed cuts and in a best case scenario envisions an additional $1.5 trillion in cuts. And these are Washington cuts, not real cuts; they merely reduce the expected rate of increase in spending, while the federal government will continue to grow.