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Protesters Storm Tennessee Capitol Over Income Tax Plan Fox News NASHVILLE, Tenn. July 13, 2001 — The Legislature passed a budget with no new revenue and abandoned plans for an income tax Thursday night after rowdy protesters stormed the Capitol, breaking windows and chanting "No New Taxes!" The Senate voted 20-9 in favor of a budget passed earlier in the week by the House, which uses $560 million of the state's tobacco settlement money to balance the books. Senators included $4st legislative session in state history. Instead of adjourning for the year, however, both chambers recessed until Aug. 7 in case they have to override a veto of the budget by Gov. Don Sundquist, who called it "a likely candidate" for his veto. Just minutes before the Senate vote, state police locked the doors to the Capitol after hundreds of protesters got out of control -- banging on the doors of the chamber, breaking office windows and accosting lawmakers as they made their way down the statehouse hallways with police escorts. "People outside are protesting, not even knowing we were trying to find a way to give them a vote," said Sen. David Fowler, who was negotiating to include a referendum on an income tax. Protests have become a regular feature on Capitol Hill in the last three years as lawmakers considered an income tax. Until Thursday, the protests had been peaceful and were primarily drivers circling the building in their cars, honking their horns. Traffic outside the Capitol was deadlocked as protesters kept out of the statehouse crowded parking lots and streets honking their horns and waving signs reading "Tax Revolt!" and "No Income Tax." A big cheer went up as word spread that the Senate had passed the "no new revenue budget" and the income tax was dead. "The people are passionate when they say no income tax," said Steve Gill, a Nashville radio talk show host who had helped organize the protests. Demonstrator Tom Brown said the people don't want more taxes, they want responsible government. "We need to cut spending and be responsible when spending the people's money," he said. Tennessee is one of nine states without a broad-based income tax, but has one of the highest sales tax rates at 6 percent, with local governments adding up to 2.75 percent. Senators had trouble getting enough votes to pass the budget earlier in the day, partly because of Sundquist's veto warning. Along with using the state's tobacco settlement money, the budget cuts $339 million from Sundquist's proposed $19.9 billion budget and would require state departments and agencies to find an additional $100 million or more in savings. The budget funds 2.5 percent pay raises for state employees, half of the governor's recommended building maintenance projects, actuarially funds TennCare, and attempts to meet all statutory requirements, court orders and public safety needs. Senate and House members spent much of the afternoon meeting in small groups behind closed doors, trying to reach agreement on some form of revenue plan. The discussions apparently centered on a flat income tax ranging from 2.75 percent to 3.5 percent. The problem apparently was over whether to hold a statewide referendum before or after the tax was implemented. As word of the income tax plan filtered out of the Capitol and on to talk radio airwaves, protesters began streaming to the statehouse. Two state troopers also were sent to the Lebanon home of Sen. Bob Rochelle, a leading proponent of the income tax, after one talk radio host encouraged tax opponents to go there and honk their horns in protest. Passing a budget ends a marathon session that began in January and has carried the Legislature past July 1, the start of the new fiscal year, for the first time in state history. A stalemate between the two houses over a revenue plan led lawmakers to approve a temporary budget June 29 to keep government from shutting down on July 1. They returned on July 5 to resume their discussions on a permanent budget. The state constitution requires lawmakers to pass a balanced budget for each new fiscal year. In accordance with Title 17 U.S.C. Section 107, any copyrighted work in this message is distributed under fair use without profit or payment for non-profit research and educational purposes only. [Ref. http://www.law.cornell.edu/uscode/17/107.shtml]
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