Senate Democrats Vote to Raise Taxes by Over $220 Million                                  
 Tax Increase Passed Despite Unprecedented Growth Revenue

Nashville, Tenn. – This afternoon the Senate’s lone independent member joined all sixteen Senate Democrats to increase taxes by over $220 million.  All sixteen members of the Republican Caucus voted against the tax increase.
The tax increase was approved despite the state having one of the largest budget surpluses in history.  The state funding board has projected that the state will have at least $700 million in new recurring dollars, and roughly $500 million in new nonrecurring funds. 

One of the main reasons for the growth revenue is over collection of current taxes.

“The sponsor of the bill stated on the Senate Floor that the proposed improvements to education can be funded without a tax increase,” said Senate Republican Caucus Chairman Diane Black (R-Gallatin). “Tennessee has more money this year than originally anticipated by the funding board.  It does not make sense to raise taxes in a year where growth revenue is extraordinary.”

Specifically, Senate Bill 2326 will increase the tax on a pack of cigarettes by 42 cents.

“It is hard to understand why they voted for 42 cents when Governor Bredesen himself funded his supplemental budget with a 25 cent increase,” said Senate Republican Leader Mark Norris (R-Collierville).  “We could do much better with much less.”

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