Sorry Bill, but your daddy DID lead the income tax effort

Knoxville Mayor Bill Haslam spent a lot of time this week trying to convince voters that he would not support an income tax and that his father, Jim Haslam, was not leading an effort to do so in 1999.

Haslam, in speaking with The Associated Press said, “He [Zach Wamp] makes it sound like my dad was out leading the effort, which is not true.”

Tom Humphrey in a July 26, 1999 piece in The Knoxville News Sentinel titled “Sundquist hopes to sway voters in favor of income tax before special session – Both sides plan vigorous media blitz,” paints a different picture.

NASHVILLE — Encouraged by a poll indicating more support for an income tax, a coalition of state tax-reform advocates is hoping for a media publicity boost that will far outstrip its $1.2 million advertising budget.

The coalition, known as Citizens for Fair Taxes, has lined up some of the state’s best-known business leaders — Knoxville’s Jim Haslam, for example — for its board and is actively raising money this summer.

At least a couple of special-interest lobbyists who have been the target of fund-raising solicitations have complained of “intimidation” in a meeting with two key state legislators. Others dismiss such contentions.

…

Part of the governor’s hopes for a legislative victory in a special session — following a flop in attempts earlier this year — rest on selling more of Tennessee citizens on the idea that tax reform is necessary.

“I believe I can change the minds of people in this state,” the governor said.

Sundquist plans a series of appearances around the state to spread his message of a “bleak” state financial picture and the “need to invest in our future.” His cabinet members will be making similar pitches.

Two other such efforts are under way, according to organizers. One is the campaign by Citizens for Fair Taxes; the other a tentative plan by former Gov. Ned McWherter, a Democrat, and former Sen. Howard Baker, a Republican, to publicly proclaim concern over the state’s tax system.

Let’s regroup for a moment here people.  Governor Sundquist wanted to “change the minds of people in this state,” through a series of appearances to spread what?  His fear-mongering message of a bleak future ahead for Tennessee.  Helping in that SAME effort were some “tax reform advocates,” namely, Citizens for Fair Taxes, who used the power and influence of Jim Haslam to bolster support for this plan.  (Don’t be fooled by the phrase “tax reform,” it was clear to all involved at that time that “reform” meant “income tax.”)   Not only was Bill Haslam’s father out shilling for the income tax, but so was Mike McWherter’s dad and former Tennessee Governor, Ned.  Also throw into the pot Sen. Howard Baker (who just happens to be Bill Haslam’s “Honorary Chairman” for his campaign.)

According to Humphrey’s piece, Citizens for Fair Taxes had a host of heavyweights on it’s board of directors.

The nonprofit organization, chaired by Nashville businessman Clayton McWhorter, has a board of directors including Ernest Davenport, CEO of Eastman Chemical Inc. in Kingsport; Allen Morgan, who heads the investment firm of Morgan Keegan; and Haslam, who heads Pilot Corp. in Knoxville and is a longtime member of the University of Tennessee board.

…

Several interest groups acknowledged giving money to CFT. Kent Starwalt, executive director of the Tennessee Roadbuilders Association, said his group has made the biggest donation so far. Poss agreed, but neither man would give a figure.

The well-organized group had conducted several polls across the state.

The most recent — a survey of 500 “likely” Tennessee voters on June 29-30 by The Tarrance Group of Alexandria, Va. — declares in a summary of key findings:

“As Tennessee voters become more aware of the impending budget deficit with next year’s budget, support for the proposal to make changes to the state tax system has begun to increase.

“Fifty-one percent of Tennessee voters now indicate that they favor the proposal to make changes to the state tax system by eliminating the sales tax on food, cutting the overall sales tax from 6 percent to 4 percent and creating a 4 percent flat income (tax) with personal and per-child exemptions.”

Let you forget, dear readers, this four-by-four plan was really being pushed by these groups.  In a previous blog post of mine, Are we going to party like it’s 1999?, I referenced an article by The Sentinel’s Frank Cagle that gave the real scoop on the four-by-four plan.

What the Citizens for Fair Taxation forces neglect to put in their tax reform brochures is that a 4 percent income tax is a 2 percent tax cut for the people who pay the largest share of the state’s 6 percent Hall Income Tax.These people provide the seed money to get a gubernatorial campaign up and growing.

Let’s see them put a provision in the income tax plan that keeps the Hall Income Tax and then see how much financial backing the plan gets.

I’m not sure if the group was officially called “Citizens for Fair Taxes” or “Citizens for Fair Taxation.”  It doesn’t really matter to me though, it all translates to “Citizens for Income Taxation.”

You might find it interesting to know how much money some of the players mentioned with the Citizens for Fair Taxes group has donated toward the gubernatorial campaign.

• Clayton McWhorter – $5,000 to Haslam; $5,000 to McWherter.  His wife Michelle also gave Haslam $5,000.
• Allen Morgan – $5,000 to Haslam.  Family members J. Worth Morgan and Musette Morgan at the same address also gave the maximum of $5,000.

Maybe Bill Haslam is right, his dad wasn’t out leading the effort… it was his dad AND the Honorary Chairman of his campaign for governor.  I just don’t know how Tennessee voters can trust anything Bill Haslam says these days.