As Governor Sundquist pointed out in his speech on Monday, the sales tax is a dying tax. Sixty percent of what we spend money on is services, which are difficult if not impossible to subject to a sales tax. Congress has decided thus far to ban sales taxes on Internet purchases. In the age of the Internet, the handwriting is on the wall for the sales tax. There's no future in it.
Sales taxes are also the least fair taxes around.
They are highly regressive, having a disproportionate impact on those least able to afford them. Taxation reflects key social values. A tax system built on sales taxes communicates a lack of concern for the basic needs of the poor and vulnerable. A mildly progressive income tax, on the other hand, spreads the burden, with those most able to contribute to the common good bearing a somewhat heavier responsibility to do so. In a national economy as strong as ours now is, there is no reason why Tennessee should be struggling with annual budget shortfalls.