Gov. Bill Haslam’s plan to further reduce the Hall income tax for seniors was a victory for Lt. Gov. Ron Ramsey, who has been pushing for Hall tax reductions for years — and he wants to keep the cuts coming.
The Hall income tax is a state tax on income from investments. The governor’s proposal would cut the Hall income tax by raising the exemption level for people over 65 from $26,000 to $33,000 for individuals and from $37,000 to $59,000 for joint filers.
Ramsey said he was pleased that Finance and Administration Commissioner Mark Emkes, when making his presentation about reducing the Hall income tax, used the language that the lieutenant governor had been using for years.
The Hall tax, Ramsey said, was hurtful to senior because Tennessee encourages people to save a nest egg for retirement — and choose the Volunteer State as a place to retire.
As it stands now, “When you start drawing that money out, suddenly we start taxing it,” Ramsey said. “So I’m glad that the governor is seeing that because I do think we need to be a great place to retire.”
And Ramsey wants to keep rolling on the reductions.
“I think we can… over a few years get to the point that (the tax) is insignificant, at least, for those over the age of 65,” Ramsey said. “The governor’s bill is a step in the right direction.”
Trent Seibert can be reached at firstname.lastname@example.org, on Twitter(@trentseibert) or at 615-669-9501.