An effort to do away with Tennessee’s tax on investment income has been dealt what is likely a final blow in the state Senate, at least for this year. The bill’s sponsor gave up after butting heads with other lawmakers.
Republicans interested in cutting the Hall income tax couldn’t agree about whether scaling back or doing away with it altogether was the right move. The current 6 percent tax on investment income generates around $260 million a year.
Clarksville Senator Mark Green’s plan would’ve still collected the portion of the tax that goes to local governments.
But American for Prosperity – backed by the billionaire Koch brothers – wanted full repeal. Green wouldn’t have it.
“It’s a violation of promises I made to my community. I can’t push the bill forward.”
Governor Bill Haslam was also in favor of putting off the tax cut as the state is experiencing a drop in business tax collections.