“There’s a connection with all the social-justice aspects of the Old and New Testaments,” said Bill Howell, the Middle Tennessee organizer for Tennesseans for Fair Taxation, a statewide coalition for tax reform. “There’s a general preference for the poor expressed in the Bible.”
But the Tennessee tax system works exactly opposite, taking the proportionally biggest bites from its poorest citizens. At 11.7 percent, the total state tax burden on the poorest families, who earn less than $14,000 a year, is nearly four times the rate as for the wealthiest Tennesseans. This is according to a 2003 report from the Institute on Taxation and Economic Policy, a nonprofit, nonpartisan organization based in Washington, D.C.
The main culprit is the sales tax, among the highest in the nation overall and the highest for groceries (even after recent changes). A loaf of bread, for instance, costs the same whether someone earns $14,000 or $140,000, and so high-income households spend only about four percent of their budgets on groceries. Low income households, by contrast, spend about 21 percent.
The stark bottom line: In proportion to their income, the poorest citizens get hit hardest by taxes while the richest get away easiest.
Now that is a reason to pour some symbolic sweet tea in the Tennessee River.