Republican candidate Ron Ramsey said Wednesday that if he's elected governor, he wants to phase out the state's estate tax on inheritances and give seniors a break on the Hall income tax on investments.
During a campaign swing through Chattanooga, Lt. Gov. Ramsey said cutting such taxes would encourage more seniors to stay or relocate in Tennessee.
He suggested that the losses from cutting estate and investment income for seniors could be offset by having more seniors living in Tennessee paying sales and property taxes.
"I'm a big believer in supply-side economics," Lt. Gov. Ramsey said. "You can lower some taxes and actually increase your revenues. We literally have people moving out of this state because of the inheritance tax."
Tennessee collected $73.7 million in estate and inheritance taxes and $170.9 million in Hall income taxes last year, according to the state Department of Finance and Administration.
Lt. Gov. Ramsey said he would limit the Hall income tax cuts to those 65 and over and would oppose proposals to remove the state sales tax on food.
"I don't think we could afford that (ending the sales tax on food) because you wouldn't get the same kind of increase in economic activity when you cut consumption taxes," he said. "You do have to have a certain amount of tax revenue to run the government."
Lt. Gov. Ramsey said he supports teaching the Constitution in public schools and opposes the USA Patriot Act and the $700 billion Troubled Asset Relief Program.
The lieutenant governor is vying for the Aug. 5 Republican nomination with Knoxville Mayor Bill Haslam and U.S. Rep. Zach Wamp, R-Tenn. The winner will face Democrat Mike McWherter in the Nov. 2 general election.
Mike Scaillia, Tennessee chapter president of the Constitution Defenders who invited Lt. Gov. Ramsey to his Hixson shoe repair business Wednesday, said he supports him because Rep. Wamp supported the Patriot Act and the TARP and Mr. Haslam opposed allowing guns in city parks and raised city taxes.
Mr. Wamp said the Patriot Act helped secure the country against terrorism after the Sept. 11, 2001, attacks. He said the TARP helped avoid a financial meltdown in fall 2008.
Mr. Haslam said he supports gun rights and is a member of the National Rifle Association. He said that with the state-mandated rollback in taxes after reappraisal, Knoxville property tax rates have fallen to a 50-year low while he is mayor.