Tennessee’s individual income tax structure is eighth-best, according to a report in the Greenville Sun, citing a Tax Foundation report. That report emphasizes transparency and simplicity. It did not study tax burden. The Tax Foundation report looked at over 100 variables in 5 categories: “corporate, individual income, sales, property, and unemployment insurance.” The Sun noted that the state fared poorly with respect to sales tax structure, ranking 45th, but was middling in corporate tax structure, (21st) unemployment insurance, (22nd) and property tax structure (29th). There is room for improvement, and presumably lawmakers see value in such reports. Interestingly, the Tax Foundation ranked Tennessee 14th overall.
The author of the study hopes to start a conversation between individuals, lawmakers, and business owners, in order to talk about how states might improve, and how it might be done.
At some level, there will always be a need for professional expertise. It behooves political leaders, however, to minimize the frustration of tax collection and compliance, so that citizens can get back to the more important matters of life. Perhaps a more holistic look at the tax codes in many places has never been undertaken. Politicians may find that rules grew continually, with no foresight, or coherent purpose. It can often be easier to add things to the edifice of existing regulations, rather than do the painstaking work of figuring out what’s necessary, and what is superfluous.
In any case, whether Tennessee continues to simplify its tax code, or whether leaders make it more complex, Burkhalter & Burkhalter can help you. Whether you are an individual, or you run a business, we can help. We’ve got years of experience here in Tennessee, and that’s great news for those who’d rather worry about something other than their taxes. Get a free consultation today.