It's been an interesting couple of weeks in the Tennessee governor's race, as things begin to heat up for the 2010 primary. And the latest bombshell is that Knoxville Mayor Bill Haslam, a GOP candidate and son of Pilot Oil Company chair Jim Haslam, has paid $136,676 in taxes on $2.9 million in income. (Note: That's a rate of 4.9%). Tom Humphreys, one of the top political reporters in Tennessee with the Knoxville News-Sentinel, has written several articles tracking the financial disclosures and non-disclosures, and the questions raised by Haslam's income tax data.
Meanwhile, West Tennessee state Senator Roy Herron has left his bid for governor to run for the 8th Congressional District. Green economy proponent Ward Cammack has also left the race for the Democratic nomination after failing to generate sufficient popular support.
The Haslam tax issue is made even more significant by the fact that the state of Tennessee has no state income tax, and one of the highest sales tax rates in the country. Meanwhile, Tennessee faces a major budget shortfall.
Given the economic and political climate in Tennessee, the conventional wisdom is that the next governor of the state will almost certainly be a Republican. Haslam, who has strong connections, a top-notch staff, and a huge fundraising advantage, has been seen as the favorite, although the Tea Party (anti-tax) set in Tennessee has been pretty strongly against Haslam due to his silver-spoon, never-worked-a-day-in-his-life pedigree. (Haslam is trying his best to overcome the label by claiming that he worked for one of his daddy's gas stations and understands firsthand what it's like to be a small business owner.)
And surprisingly, Haslam has had a tough time in some early polling. US Rep (and C-Street resident) Zach Wamp is polling strong among Republicans, using a populist message to appeal to opponents of big government across the state. And Lieutenant Governor Ron Ramsey (voted as Lt. Gov. by his peers in the state Senate, not by popular vote) is also pushing Haslam from the right.
Here's Tennessean columnist Gail Kerr:
It's a simple question: How much money did Pilot pay you? The answer would not give away other information, except perhaps how much profit oil companies rake in on the backs of consumers.
All three of Haslam's opponents saw a golden opportunity to jump on the perceived front-runner.
[Memphis District Attorney Bill] Gibbons said Haslam is afraid because "Pilot has become a poster child for price-gouging" at the pumps. U.S. Rep Zach Wamp said the secret Pilot income "will be a major and fundamental issue in the primary." Lt. Gov. Ron Ramsey said if Haslam is going to brag on the stump about the success of Pilot, "you ought to at least explain what you are getting out of it."
The issue that no Republican - or Democrat, for that matter - seems willing to touch is that we've got 10%+ unemployment in the state of Tennessee, and simultaneously have an enormous revenue shortfall which is is going to result in major cuts to jobs and vital government services. And Republicans like Wamp (who voted against the Obama stimulus package in the House) seem unwilling to acknowledge that without the federal boost from the recovery act, the state government would already be slashing education and Medicaid funds. But in spite of these extraordinary times, we also have a regressive tax structure that punishes the jobless, single mothers, large families and those with low incomes. A consumption-based tax is regressive and hits families who can't find any other place to cut back on spending.
Tennessee's historic difficulties with a state income tax are well-known in the annals of political lore. The Tennessee Tax Revolt was a big part of the success of the Republicans in the 2000 election, who rode the tide of populist outrage about a proposed state income tax to deliver the state (and consequently, the White House) to George W. Bush. For all the talk about Florida, it's often forgotten that Al Gore didn't win his home state in 2000 and that had he won Tennessee, Al Gore would have been our 43rd President.
The victors in the Tennessee Tax battle have turned to a national campaign against "big government and high taxes." And although I have not seen an official birth certificate, the word on the street is that today's "Tea Party Patriots" are born out of the same grassroots movement of Republicans who helped fight the Tennessee state income tax.
As we head into the New Year, teabaggers are planning to convene at the Opryland Hotel and Convention Center (just steps away from the Grand Ol' Opry) over the weekend of February 4-6 for their first national convention. Sarah Palin and Michele Bachmann will be headlining this historic event. Tickets are just $565 a piece, so don't miss out on your opportunity for teabagging glory!