Tennessee Governor Advocates for Federal Income Tax Repeal with FAIRtax Implementation

Tennessee's Bold Move to Reform Federal Taxation

In a significant step towards tax reform, Tennessee Governor Bill Lee recently signed resolution HJR17, advocating for a complete repeal of federal income taxes. This resolution, signed on April 24, 2025, encourages the United States Congress to enact a national retail sales tax as outlined in the FAIRtax Act H.R. 25. Additionally, it proposes the repeal of the 16th Amendment of the U.S. Constitution, which established the federal income tax system.

Governor Lee and Senate leader Jack Johnson emphasized that the founding framers never envisioned a system where the federal government taxed personal income. Johnson remarked that the resolution is a call for a transformation of the current taxation system, which, they argue, stifles individual productivity and savings. The FAIRtax initiative aims to shift the tax burden from income to consumption, presenting a fresh perspective on how the nation generates revenue.

Tennessee has successfully operated without a personal income tax since 1947, relying on its long-established retail sales tax. This approach has been instrumental in drawing businesses to the state, fostering economic growth, and subsequently creating numerous job opportunities. The overwhelming success of Tennessee's tax policies is evident, and proponents argue that it serves as a model for other states and the federal government.

According to the resolution, the adoption of H.R. 25 would eliminate not only the personal income tax but also various other taxes, including the alternative minimum tax, inheritance tax, gift tax, capital gains tax, corporate income tax, and payroll taxes for both employees and employers. Instead, a national retail sales tax would be implemented, fundamentally overhauling the nation’s tax structure.

The Fair Tax Act promotes principles such as fairness, simplicity, transparency, and economic growth. Proponents argue that this model of taxation not only simplifies the tax code but also encourages consumer spending and investment by removing the punitive nature of income-based taxes.

For additional context, Tennessee's Amendment 3, approved by voters in 2014, explicitly prohibits any state or local tax on wages or earned income. This provision highlights the state’s commitment to maintaining a consumption-based tax system, further solidifying the argument for federal adoption of the FAIRtax.

The resolution has sparked conversations across legislative bodies and could potentially redefine how America views taxation. Advocates maintain that such a transformative change could lift the financial burdens held by working Americans, offering a fairer system that aligns more with contemporary economic realities.

Learn more about the FAIRtax initiative and watch informative videos explaining its principles and workings on the official FAIRtax websites, including fairtax.org.

As Tennessee leads the charge towards a new tax paradigm, the implications of this resolution may pave the way for broader discussions on federal tax reform across the United States. With the backing of influential figures and a firm resolve from local governance, the FAIRtax movement represents a pivotal shift in American tax policy discussions.