An exterior view of the Tennessee State Capitol building.Tennessee lawmakers are fortunately required by our state Constitution to balance the state’s budget each year.
That leaves only a couple of options when the cost of the things that the state needs or wants exceeds the funds available: Cut spending or raise taxes.
Raising taxes – especially trying to impose an unconstitutional state income tax – would be disastrous. It is no coincidence that Tennessee has been attracting major economic development the past few years while it has simultaneously maintained low overall taxation – and avoided a general income tax.
With its sensible tax rates and reasonable – but not excessive – regulations, Tennessee has remained one of the most business-friendly states in America. That means jobs and income for more of our residents. We certainly do not want to tinker with that successful formula by increasing taxes just so state government can spend more.
Instead, Tennessee has wisely chosen the path of spending cuts to balance the budget.