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Tennessee Lawmakers Avoid Tax Hikes; Protesters Cheer

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From Associated Press

Anti-tax protesters celebrated a temporary victory Wednesday as the state House adjourned without expanding the state sales tax or voting on a proposal to add an income tax.

“The voice of the people was heard,” said 42-year-old Mark Cygler, a self-employed chef who joined hundreds of other protesters outside the Capitol.

Cygler quickly added that the fight is far from over. The House reconvenes Wednesday with the state facing a $480-million shortfall in the current budget year. It would take $1.4 billion in new taxes next year to fully fund Gov. Don Sundquist’s $9.6-billion budget proposal.

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Tennessee is one of nine states without a broad-based personal income tax.

House Speaker Jimmy Naifeh is attempting to pass a 4.5% income tax, but doesn’t expect a vote on the plan for another two weeks.

Throughout the day, demonstrators honked handheld air horns and waved anti-tax signs as they anticipated a House vote on Naifeh’s bill.

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