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Tax Freedom Day in Tennessee is here

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The federal income tax deadline looms, but Tennesseans have reason to celebrate.
As of April 5, Tennesseans collectively had made enough money to pay their total federal, state and local tax bill for 2014, according to the Tax Foundation’s annual Tax Freedom Day calculations.
Tennessee has one of the earliest Tax Freedom Days in the country, according to the Washington, D.C. based think tank’s annual report. Only Louisiana (March 30), Mississippi (April 2), and South Dakota (April 4) achieved tax freedom earlier this year.
For the nation as a whole, Tax Freedom Day arrives on April 21 —  three days later than last year “due mainly to the continuing economic recovery, which will boost federal tax revenue collected through the corporate, payroll, and individual income tax,” according to a news release.
“Arguments can be made for why the collective tax bill is too high or too low, but in order to have an honest discussion, it’s important to understand where we stand,” Tax Foundation economist Kyle Pomerleau said in the release. “Tax Freedom Day gives us a vivid representation of how much we pay for the goods and services provided by governments at all levels.”
Other highlights from the Tax Freedom report:
— Americans will spend more on taxes in 2014 than they will on food, clothing, and housing combined.
— Americans will spend 42 days working to pay off income taxes, 15 days for excise taxes, and 11 days for property taxes.
— Americans will pay $3 trillion in federal taxes and $1.5 trillion in state and local taxes, for a total bill of more than $4.5 trillion, or 30.2 percent of the nation’s income.
The Tax Foundation, which generally is critical of all tax increases, describes itself as a nonpartisan tax research group.
Click here for the full Tax Freedom Day report.

TVA pays record $579M to state, local governments

The Tennessee Valley Authority paid a new high of $579 million in tax equivalent payments in fiscal year 2012, a $49 million increase over fiscal 2011.

The biggest chunk – more than $354 million – was paid to Tennessee governments.

TVA pays tax equivalent payments to state and local governments in the states where it sell electricity or owns power plants and other assets.

“These funds provided by TVA play a significant role in the continued economic development, improved quality of life, and strong community growth across TVA’s service region,” outgoing TVA President and CEO Tom Kilgore said in a news release. “The payments also are an important part of TVA’s mission to help the consumers we serve every day.”

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Tennessee tops Tax Foundation sales tax rankings

Tennessee ranks highest among all 50 states in a new study of state and local sales taxes released today by The Tax Foundation, a nonpartisan research organization.

Tennessee has the highest combined state and local sales tax rate with an average of 9.43 percent, according to the study.

Arizona is the next highest at 9.12 percent. Rounding out the five highest states are Louisiana (8.86 percent), Washington (8.83 percent) and Oklahoma (8.68 percent).

Tennessee shoppers will get a break from nation’s highest sales tax rate this weekend with the annual state sales tax holiday Friday through Sunday.

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Tennessee has nation’s lowest tax burden


Workers of Tennessee, take the day off. You’ve earned it. While most of the country will work
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another two weeks or more to reach Tax Freedom Day, Tennessee workers passed that milestone on March 31, according to the Tax Foundation.


Tennessee has the lowest average tax burden in the country this year, the foundation says.

Tax Freedom Day represents how long it will take the average worker to earn enough money pay his or her total federal, state and local tax obligation for the year. For the nation as a whole, Tax Freedom Day this year comes on April 17.

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