Issue Overview: The Taxpayer Bill of Rights (TABOR) is a proposal for an amendment to the Tennessee Constitution. Passage would establish rules relative to state revenue growth, state spending growth and tax increases that could not be broken by the General Assembly, unlike some provisions currently in state law. TABOR would basically limit growth in state spending from year-to-year to the rate of inflation. Growth in state revenue intake would be limited to the same rate, with excesses either used to finance the state's "Rainy Day Fund" or returned to taxpayers. Finally, TABOR would require approval of the people through a referendum in order to impose permanent tax increases. Colorado has had TABOR in its constitution for several years, and it has protected that state from runaway spending and subsequent tax increases.
NFIB Position: NFIB members support adoption of a Taxpayer Bill of Rights. Small-business owners especially like the provision limiting growth in state spending to the rate of inflation. This reasonable limit allows for more spending from year to year, but prohibits spending beyond what can reasonably be expected to come in to state coffers. These budgeting guidelines are the rules by which families and business owners live by, so it is reasonable to expect government to do the same.
Issue Status: The process for amending the state Constitution is long and difficult. A joint resolution must pass both houses in the 104th General Assembly, whose two-year session begins Jan. 11. The same resolution must then pass both houses of the legislature by a two-thirds majority in the 105th General Assembly. It is a long road, but the long journey will be worth it!
What to Do: Contact your state lawmakers and urge them to support adoption of a Taxpayer Bill of Rights amendment to the state Constitution.
What to Say: Tell your lawmakers that small business owners expect state government to live by the same rules that they do when they are budgeting for the next year. Reasonable limits in the growth of state spending will prevent emergency tax increases on businesses.
