On Nov. 4, Tennesseans have the opportunity to cast their ballots in favor of a strong economic future. The passage of Amendment 3 would ensure that the state legislature cannot, at any time, authorize or allow any state or local tax on earned personal income.
The importance of Amendment 3 cannot be overstated. Tennessee's economic growth owes much to its status as a no-income-tax state. While growth in high-tax states stagnates, Tennessee continues to attract businesses large and small. Many Tennesseans may take the state's friendly economic climate for granted, but they should not: With some careful word-smithing, income-tax advocates could craft legislation that would impose this harmful and anti-growth tax on all working individuals.
To borrow a phrase from West Tennesse state Sen. Brian Kelsey, R-Germantown, who has advocated tirelessly for Amendment 3, passage of this initiative allows Tennesseans to say, "Not only do we not have an income tax, but we'll never have an income tax."
This promise is crucial to attracting individuals, ideas and income to the Volunteer State.
As we outline in our book "An Inquiry into the Nature and Causes of the Wealth of States," income tax is a major factor in the economic health of a state. Over the past decade, the nine highest income tax rate states shrank in population relative to the nation (6.3 percent population growth versus 9.3 percent), while the nine states without an income tax, including Tennessee, enjoyed population growth greater than the national average (14.6 percent versus 9.3 percent).
The passage of Amendment 3 would continue Tennessee's admirable tradition of protecting workers and the businesses they create. The state's lack of an income tax is one major way in which Tennessee helps businesses thrive; there is also the "use tax," which, for nearly seven decades, has protected local merchants from unfair competition from merchants outside of the state. Tennesseans should be deeply proud of their state's pragmatism and economic climate, and there are few better ways to demonstrate this pride - and keep the state's reputation strong - than by voting yes on Amendment 3.
All kinds of businesses, from American-dream mom-and-pop shops to giant retailers like Amazon, choose to locate in Tennessee. The state plays a significant role in what The Wall Street Journal dubbed the "Heartland tax rebellion." Tennesseans owe it to themselves to keep the state economy strong for generations. Tennesseans owe it to themselves to vote yes on 3.
Dr. Art Laffer & Travis H. Brown are the co-authors of "An Inquiry into the Nature and Causes of the Wealth of States."