Bredesen: Either OK cable tax, or find alternative

NASHVILLE, Tenn. (AP) —Tuesday, Gov. Phil Bredesen challenged lawmakers to approve his plan to eliminate a tax exemption on cable bills or else find another way to restore funding for higher education and save 200 state employees’ jobs.

The proposal to lift the tax break on the first $15 of a cable bill is part of the Democratic governor’s plan to raise about $49 million in new revenue a year. But Republicans were quick to announce they wouldn’t go along with it.

Tennessee Gov. Phill Bredesen

Gov. Phill Bredesen speaks during the annual State fo the State Address. Bredesen is working to eliminate a tax exemption concerning cable bills as part of a larger plan to raise almost $50 million in new revenue a year. (AP Photo/Mark Humphrey, File)

Bredesen suggested in an interview with The Associated Press that opponents were too quick to oppose the measure.

“I say to someone who would say that, ‘Fine, what are you going to do to get $49 million?'” Bredesen said.

The governor said his proposal is an effort to make severe budget cuts less painful. He said he’s willing to be flexible.

“If somebody wants to put a little more pain here and a little less here, that’s fine with me,” he said. “But you’ve got to move beyond saying ‘I don’t like this,’ and into ‘I don’t like this, and here’s how we plan to fix it.”

Foresters, prosecutors, public defenders and probation and parole officers could lose their jobs if state leaders can’t come up with more revenue.

The state has been hit with what the governor has described as a “very reasonable lawsuit” from the satellite TV industry because it doesn’t get the kind of tax break that cable does. Bredesen estimates that the average cable bill would increase just over $1 per month if the tax measure goes into effect — or if the courts eventually intervene.

Also Tuesday, forestry officials warned that eliminating jobs could seriously hamper Tennessee’s ability to protect the forests that cover half the state.

“It takes people to do the job — you can’t do it with your cell phone,” Bill Williams, chairman of the Tennessee Forestry Commission, told the Senate Environment Committee.

Twenty-three of the jobs cuts would hit foresters who work with private landowners, said John Ross, the vice chairman of the Forestry Commission.

“I’m quite alarmed from a landowner standpoint,” Ross said. “These are the people in the field who give advice to landowners, who check on logging operations, who get reports for water quality violations.”

Meanwhile, the GOP-controlled Senate Environment Committee on Tuesday unanimously advanced a five-year renewal of a $5.4-million-per-year tax on beer and other bottled drinks that helps pay for litter cleanup.

Copyright 2010 The Associated Press.

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  1. Personally I think a lot of cable customers will then cancel their contracts and switch to satellite if the tax is introduced. This is what the satellite companies are hoping for.

  2. True, this could cause more people to switch services. Having used a satellite connection to play games or download anything, it is can be a painful task.

    Storms have also destroyed my signal many times, and I would rather take a stable cable connection at a higher rate than a mediocre connection that craps out when I wanna surf the web during a thunderstorm.