by Lindsay Boyd
Beacon Center of Tennessee
February 14, 2014
Policy
In early January, Business Insider released a report documenting the migration of individuals from one state to another and rating each state for their retirement-friendly economic climates. Tennessee still rates in the middle of the pack, despite being touted as one of a few income-tax free states that would seem ripe for business development and retiring seniors. The Hall Tax, an antiquated tax law from a bygone era, explains this surprising rating. The tax levies a six percent tax on interest and dividend income received by individuals who maintain their legal residence in Tennessee. Seniors, who are more likely to rely on the income from stock dividends, are disproportionately affected. Rather than slowly increasing the exemption levels from this punitive tax, lawmakers should bring an end to this unjust law and finally make Tennessee a truly, all-encompassing income-tax free state.



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