Democrats Emphasize Tax Cuts for Families

Gov. Lee’s Budget Proposes Tax Breaks for Stock Brokers, Lawyers, Doctors and Lobbyists

NASHVILLE — While Senate Democrats focus on tax relief for Tennessee families, Gov. Bill Lee’s budget proposal would give $40 million of tax breaks to stock brokers, lawyers, doctors and lobbyists.

Sen. Sara Kyle continues to champion Senate Bill 1724, an effort to include feminine hygiene products in Tennessee’s annual three-day sales tax holiday. Four Republicans members of the Senate Revenue Subcommittee gave the legislation a “negative recommendation” Feb. 18 because the initiative was unfunded. (Vote included below.)

A fiscal analysis estimated that state revenues may drop by $130,000 if approved.

“I think there was worry from some on this committee that some people might go out and buy these items in bulk during the tax-free weekend—I can only say to you that I hope they do,” Kyle told the committee. “Items for sale during the current sales tax holiday are intended to last the student the entire year —clothes, school supplies, computers. Parents don’t go out and buy just one shirt or one pencil and hope that gets their child though the entire school year.

“Same with tampons and pads — women do need these products every month, and again, I’m simply trying to ease the burden for a very small amount of time for these families and these women,” Kyle said.

Senate Bill 1724 is scheduled to be heard next week in Senate Finance, Ways and Means.

Sen. Katrina Robinson will also introduce a pro-family tax cut next week; Senate Bill 1905 would eliminate the sales tax on diapers and baby wipes.

There are about 250,000 children in Tennessee three years of age or younger. Families pay around $80 a month on average for diapers, according to the National Diaper Bank Network.

The Senate Finance, Ways and Means Revenue Subcommittee is scheduled to vote on Senate Bill 1905 on Tuesday.

Gov. Lee’s Budget Prioritizes Tax Breaks for Stock Brokers, Others

While Democrats worked to advance tax relief for all families, Gov. Bill Lee’s budget proposed nearly $40 million in tax breaks for only four professions: stock brokers, lawyers, doctors and lobbyists.

The Tennessee Journal reported on Lee’s tax break proposal last week:

“Gov. Bill Lee’s proposal to cut the professional privilege tax owed by about 191,500 brokers, lawyers, doctors, and lobbyists is an easy sell among fellow Republicans in the General Assembly who have long chafed at the levy. A less comfortable fact for proponents of the reduction is that about 77% of targeted taxes are remitted by people living outside the state.”

According to estimates by The Journal, the bulk of the Lee’s new tax break — more than $29 million — would directly benefit stock brokers, lawyers, doctors and lobbyists who live outside the state. (Note: Out-of-state stock brokers are the big winners at $27.5 million!)

Those affected professionals based in Tennessee would get a roughly $9 million tax break.

And what tax relief do we find in Lee’s budget proposal for the vast majority of workers who are not stock brokers, lawyers, doctors or lobbyists? $0.

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Senate Revenue Subcommittee vote on SB1724 [Feb. 18, 2020]
Voting for a “negative recommendation”
Sen. Todd Gardenhire
Sen. Joey Hensley
Sen. Ferrell Haile
Sen. Ken Yager