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Asman: Governor Bill Haslam is the Governor of Tennessee, now Tennessee, correct me if
I'm wrong, has never had an income tax. Is that correct?
Haslam: We haven't, I think we're seeing the benefit of that now in terms of...We basically
had an eight percent growth for the past three quarters so while the whole country might
be coming back, I would argue we're coming back quicker, and I think tax policy is one
of the reasons... Asman: And in fact there are a lot of people,
Art Laffer, the Laffer curve; I've known Art for about 25 years. He moved from California
to Tennessee particularly because you don't have a state income tax.
Haslam: He did, and I can name countless individuals and corporations who have done the same thing
so, it would be our argument that the lower we can keep taxes and provide the needed services
then that's going to help our growth more than anything else we can do.
Asman: Now you do have an estate tax, and a lot of people complain because you know
obviously if you don't have an income tax you'd have to get revenue from somewhere,
one of the places you get it is a state tax but it actually doesn't get you that much,
why don't you just get rid of it? Haslam: Well it's funny you should mention
that, We are actually in the process of doing that so, I have a bill with the legislature
this year, and our budget this year, that over the next three year period it would totally
phase out the estate tax or the death tax as we like to call it now in Tennessee. We're
working on that so you know as the economy comes back and we get new revenue, you have
a chance in government to do something really different, you can go back to say: "we'll
go back to spending money the way we used to", or we can redirect our priorities and
one of those should be making the state more affordable and more attractive for people.
Asman: So where do you get revenue? If you cut the revenue source from income tax (state
income tax), so if you cut from a state tax, how do you get the revenue to make government
such as it is work there? Haslam: Well it's as I said, one thing is
we have real growth in Tennessee right now, I said last three quarters we're up about
eight percent so... Asman: What's your unemployment?
Haslam: Unemployment is down about eight percent. It has been as high as ten, and so we're
below the national average really for the first time in the last couple of years. I
think we do one of two things, one you look for real growth, and then number two you say:
"What are those things in government that we don't have to do", and then you're
making those hard choices. Those same ones, that frankly our country's going to have
to make if we're going to continue to be the country we've been.
Asman: Now you also attract a lot of foreign business to Tennessee as well. Do you have
a state corporate tax and if so are you thinking of changing that?
Haslam: Well we don't, we have a franchise and excise tax on businesses which...
Asman: Sounds like fancy name for a corporate tax.
Haslam: Well it is not a corporate income tax but again it's lower than what you'd
find in most states. We had great success, Volkswagen located their first North American
plant in Tennessee about 2 or 3 years ago and they recently agreed to basically expand
production by about 25 or 30 percent. Our manufacturing sectors are growing as rapidly
as anything, along with building services and we think those are two good indicators.
Asman: Give me rap, but I've got to ask are the changes you guys are making at the
state level going to affect federal income tax?
Haslam: Well, I mean we hope that somebody would obviously get that message that shows
the states that growing well, gaining people, gaining businesses and revenue, those are
the states with lower taxes. I think there's a great method there.
Asman: Governor Bill Haslam, great to see you.