But in an e-letter I received today from Rep. Beth Harwell, she wrote about the imminent conflict between Republicans and Democrats on the Hill over increasing or decreasing taxes; she offers this advice:
As legislators continue to examine these issues, please keep in mind the following factors:That last sentence hearkens back to the halcyon days of circling Legislative Plaza with, "It's the spending, stupid" painted on my rear window.
1) Over the past five years, State revenues have increased by 39%, while expenditures increased 57%. . . .
2) There is an anticipated natural revenue growth of nearly half a billion dollars; and
3) If there were a rollback of food tax by half a cent each year, the State would recognize a revenue reduction of $38 million per year, which is less than 10 percent of anticipated revenue.
Obviously, there must be a focus on two budgets - the budget for the State and the individual budgets of Tennessee families. The question becomes whether Tennessee is confronting a revenue problem or a spending problem. The answer--we have a spending problem that must be brought under control.
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