Anti-tax leader: Revised Haslam transportation bill is not a tax increase

The latest version of Gov. Bill Haslam’s transportation legislation has received a blessing from Grover Norquist, a national anti-tax activist, who says the package overall reduces more taxes than it increases. Haslam, who sought Norquist’s opinion, says that is “a really big deal,” reports the Times-Free Press.

Under the version of Haslam’s plan advancing in the Senate, the state would increase its tax on gas by 6 cents per gallon and diesel by 10 cents per gallon, but also cut other areas including the sales tax on groceries, the tax on earnings from stocks and bonds and corporate taxes owed by large manufacturers.

Norquist, founder of the group Americans for Tax Reform, said in a letter to state House and Senate members that the most recent version of the governor’s bill advancing in Senate represents a “net tax cut,” and does not violate lawmakers’ pledges to not raise taxes.

He also noted that the Senate had removed a proposal to link fuel taxes to inflation, “which means gas tax hikes will not be put on autopilot.”

The Haslam administration sought Norquist’s input on the Tennessee plan after seeing that Americans for Tax Reform supported gas tax increases in New Jersey and South Carolina when they were coupled with tax relief.

Norquist’s position on the Tennessee gas tax proposal contrasts with the strong opposition voiced by the state chapter of Americans For Prosperity, founded by billionaire industrialist brothers Charles and David Koch.

…Haslam told reporters he considers the announcement from Norquist to be “a really big deal.”

“This is somebody who’s kind of staked his whole thing on we should never have tax increases,” Haslam said. “Whether you agree or not, the fact that the founder of that movement — who had people sign no-new-tax pledges — says this is not a tax increase.”

Note: The Nashville Post has full text of the letter HERE. Meanwhile, Tennessee Star reports Norquist’s support has caused a backlash.

(T)he fierce backlash from conservative opponents of the gas tax increase in Tennessee to the last minute attempt by supporters of the governor’s plan to bolster its chances by calling in a “celebrity ” who has never lived in the state and knows little of the intricacies of the bill or the state’s budget, spells more, rather than less, political trouble ahead for the governor and his allies.

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