NASHVILLE — Tennessee’s next governor likely can avoid a “broad-based tax increase” but will have to remain vigilant about further weakening of the state’s current tax base, according to state Revenue Commissioner Reagan Farr.
“I think they can make it through the first term without a broad-based tax increase if they are willing to continue the process Gov. Phil Bredesen started of addressing loopholes and inequities in the tax code, but they can’t afford further erosion of the tax code,” Mr. Farr said.
Each year, the Democratic Bredesen administration pushes legislation aimed at shutting down tax loopholes.
Mr. Farr also said that given the current sluggish state of revenues in the wake of the recession, “it’s very unrealistic to talk about cutting taxes in the foreseeable future. And the main reason why is we are collecting over $1 billion less in tax revenue today than we were in 2008. At the same time, we will have spent over $1 billion in the reserves that Gov. Bredesen and the legislature set aside.”
Republicans Bill Haslam, Ron Ramsey and Zach Wamp as well as Democrat Mike McWherter all say in their campaigns that they don’t plan to push for tax increases and talk up their desire to cut or eliminate taxes. Gov. Bredesen is term-limited and can’t run for a third term.