Marsha Blackburn Thinks Tennessee Has a Payroll Tax. What??

by Rod Williams, July 15, 2026- What is wrong with Marsha Blackburn? In defending the $30 million subsidy for Starbucks to entice it to relocate to Tennessee, Marsha says the money will be recouped through payroll taxes in the first six months. What?? Tennessee does not have an income tax nor a payroll tax. The difference between a payroll tax and an income tax is that a payroll tax is taken from an employee's taxable compensation, while an income tax is a tax on a person or family's total household income.  FICA taxes, which are withheld from your paycheck and used to fund Social Security and Medicare is a payroll tax. An income tax is a tax paid by an individual based on total household income. While they differ, they are both taxes on income. Tennessee has neither. A payroll tax was once considered and rejected way back during the Sunquest administration. Marsha Blackburn was instrumental in defeating the State income tax proposal. Surely, she knows Tennessee does not have a payroll tax. 

Does Marsh really think Tennessee has a payroll tax? Watch the above video to see her say what I just said she said. Go to time stamp 4:50.

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