Three members of tax study commission critical of process

“It wasn’t a very democratic process,” said Julius Johnson, chief administrative officer of the Tennessee Farm Bureau.

Earlier this month, Johnson was part of the minority that voted against an income-tax plan recommended by the Tennessee Tax Structure Study Commission.

A strongly worded minority report released Friday said members did not get a chance to vote on other alternatives, such as a statewide property tax or a higher tax on all registered vehicles. The report was signed by Johnson and two members who abstained during the vote, Nashville lawyer Dan Haskell and Knoxville accountant Will Pugh.

“I hate to be critical of tremendous individuals; however, the final proposal was somewhat ruthlessly pushed upon us without allowing for amendments or alternatives or so forth,” Johnson said.

Nelson Andrews, a Nashville real estate developer and commission chairman, said he disagreed with the minority report.

“I think the process was as clear and as good as it could have been,” Andrews said.

Over the course of more than 41 meetings and 100 presentations, Andrews said, 14 tax plans were discussed and distilled down to two: an income-tax plan and a combined property and vehicle-tax plan. From there, a subcommittee proposed the income-tax model.

Fifteen of the 19 commission members approved the income-tax plan during the Dec. 9 vote, said Eileen Smith, the commission’s executive director. The 19th member, Carolyn Baldwin Tucker, voted no but did not join in the minority report.

The commission was created by state lawmakers after four years of contentious tax debate that resulted in a higher sales-tax rate.

The panel recommend a graduated state income tax, coupled with reductions in sales and business taxes.

Gov. Phil Bredesen, who promised to oppose an income tax during his first term, said the commission was established under his predecessor and he has no obligation to support the recommendations.

State Sen. Bill Ketron, a Murfreesboro Republican, said he is concerned about the claims made in the minority report.

“I think it weakens the credibility of the whole report,” Ketron said.

Andrews said the income-tax proposal may be unpopular but the minority report should not affect the credibility of the group’s work.

“If they didn’t like what the majority of the commission agreed on, what would they do?” said Andrews, noting that none of the dissenters presented their own plan for a vote.
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Information from: The Tennessean, http://www.tennessean.com