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Haircuts, Bull Sperm Among Tax-Exemptions

Lobbyist Hired To Exempt Special-Interest Products

POSTED: 5:05 pm CDT May 21, 2009
UPDATED: 8:34 am CDT May 22, 2009

Taxes are paid on purchased clothes and groceries, but you might be surprised about the things for which you're not paying taxes: haircuts, newspapers and weight-loss programs, to name just a few.

"Bull sperm is one of the more noteworthy products," said Ben Cunningham of Tennessee Tax Revolt.

All in all, there are more than $6 billion worth of sales tax exemptions in the state.

"Special interests over the years have gotten these exemptions in the code, and they're hired a lobbyist and been effective in exempting their particular product," said Cunningham.

One of the ideas discussed in the secret budget meeting House Democrats held Tuesday was to look at some of these exemptions in place of huge cuts.

The governor said he's presenting the budget without ending any sales tax exemptions, but it's up to lawmakers to decide what they want to do.

"They have talked to me about that," said Gov. Phil Bredesen. "If they want to look at alternatives, I mean, I'll, we'll work with them. This really is in their hands at this particular point."

Cunningham said if they're talking about looking at exemptions in regards to a complete tax overhaul, that's one thing; if they're looking to grab a few at the end of session to plug in holes, that's a tax increase.

"The taxpayers in this state have gone through an awful, terrible year, and somebody needs to worry about the family budget of taxpayers," said Cunningham. "The state budget -- we've got a lot of people worried about that."

The governor plans to give lawmakers the latest version of the budget next week.

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