Cain’s Tax Plan Could Hurt TN Retailers: Haslam

Governor Bill Haslam continues to say he’s not ready to endorse any particular candidate in the GOP presidential primary. But the governor is critical of businessman Herman Cain’s 9-9-9 tax plan, saying raising sales taxes much higher could hurt Tennessee retailers.

Part of Cain’s tax plan is a 9 percent federal sales tax. Tennessee already has a 7 percent sales tax. So Haslam says adding the two together could push Tennessee tax rates so high it undermines consumer demand.

“Obviously in a high sales-tax state like Tennessee, you’re getting to where you’re really discouraging retail purchases pretty heavily when you go to 16 to 16 and a half percent sales tax.”

And that’s before adding in local taxes from cities and counties.

Cain has made several recent stops in Tennessee while riding high in national polls. Earlier this month the search engine Google posted Nashville’s interest in Cain was second only to that his hometown, Atlanta.