Tennessee tax fight a warning to others: Tennesseans of all political stripes are taking sides on a proposal to implement a state income tax. Spenders have run up a huge $1 billion state budget shortfall

0 Comments | Insight on the News, Dec 10, 2001 | by Tony Hays

In the back of everyone's mind who follows the blood sport of Tennessee politics is the memory of that furious tax protest last July, prodded on by the state's conservative radio talk-show hosts, that swamped network news shows across the country with scenes of trashed offices, broken windows and state troopers manhandling irate citizens. The governor had tried to pre-empt the antitax rally by getting local authorities to close traffic on key avenues around the state Capitol, calling it a necessary street project. But if that was the case, bureaucrats chose to close the streets on the exact days scheduled for the rallies.

Faced by the state's populist furies in full flight, the Legislature passed a budget that cut $300 million from Sundquist's proposed spending plan (much of it slated for education), another $100 million from current state spending and threw into the kitty $560 million from the one-time tobacco settlement. Sundquist vetoed the budget, as he had threatened to do, and the Legislature overrode his veto.

And that is the situation as the spenders face off against the antitaxers while legislative leaders insist that Sundquist really isn't trying to bypass the sunshine law and confirm that he will not call a special session until the Senate and House leadership reach a consensus for a state income tax. Meanwhile, of course, leadership sessions are private. According to House Democratic Caucus Chairman Rinks, "The governor did tell us that he wanted the leadership to reach a consensus on a budget plan before he would call a special session. But I don't think it's intended to violate the sunshine law." House Minority Leader McDaniel agrees.

Richard Pearl, chairman of the Tennessee Libertarian Party and an antitax protester, thinks such claims are laughable. "Nothing about this surprises me, especially when we have a decision that says the sunshine law, and nearly every other law on our books, does not apply to the state Legislature. They learned their lessons well from the federal Congress and exempt themselves from every law they pass" Pearl tells INSIGHT.

Alexia Levison, the governor's press secretary, tells INSIGHT that neither the tax protests nor the sunshine law have anything to do with the governor's desire for a consensus among legislators before he calls the special session. "To say he is skirting the sunshine law is foolish. Special sessions cost money and we don't have any. The governor's simply trying to avoid spending money that we don't have." What about claims that he's also attempting to avoid a repeat of the July protests? "No effort will be made to keep the protesters from voicing their opinion, but every one must understand that since 9/11 special security measures are changing things, and that includes the Tennessee state Capitol," says Levison. That threat on the record, Levison makes clear with a smile that Sundquist does want an income tax and will not support a sales-tax increase in any form. "All that does," she says, "is force people to buy off the Internet."