Head: Graduated income tax benefits most citizens

Monday, May 14, 2001 at 12:00am

About 60 percent of Tennessee households would benefit under a graduated income tax proposal, state Rep. Tommy Head (D-Clarksville) will tell fellow legislators at a briefing Tuesday.

Head and Sen. Bob Rochelle (D-Lebanon) posted the proposed tax the same February day Gov. Don Sundquist unveiled the 2001-2002 budget and the administration suggestion for funding it.

The administration plan was never seriously considered, and three months later the Rochelle-Head plan comes back up in an information-only meeting Tuesday morning, to feature the figures from a financial impact study by the Tennessee Advisory Commission on Intergovernmental Relations released over the weekend.

TACIR, a think tank on local and state government issues, is chaired by Rochelle.

From the first, Rochelle said the plan would raise $800 million. It would eliminate the local sales tax and take all sales tax off food, clothing and non-prescription drugs. Total sales tax rate anywhere would be 7 percent, instead of 8.75 percent. The Hall income tax on interest income would be repealed.

Initially it was explained that the

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