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American Morning

Idea of State Income Tax in Tennessee Causing A Lot of Angry Words

Aired August 07, 2001 - 11:33   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KRYA PHILLIPS, CNN ANCHOR: A big issue in Tennessee today? where to find the money to fund state government. Some people say a state income tax is the answer, and that's causing a lot of angry words.

Reporter Lydia Lenker with CNN affiliate WTVF joins us from Nashville with more on the story.

Lydia, I can tell it's pretty busy.

LYDIA LENKER, WTVF REPORTER: Good morning, Kyra.

It is the modern day version of the Boston Tea Party here. We're going to show you the protesters who are lining up the at capital. Tea bags replaced by horn honking and sign, pig heads, you name it. They are here to keep this state legislature from passing an income tax.

We are going to show you what our state capital looks like today. It has never looked like this before. It is lined up with state troopers all around, and you're just seeing a very small portion. There are hundreds of them here. Now this legislature is coming in at high noon Central Time to try to override a veto of the state budget. But these people don't care about that. They feel that they can't trust these lawmakers. They're afraid an income tax could come up. There are several income tax plans on the table this morning. There have been for weeks. This budget drama has become historic in Tennessee. Hundreds of people have taken their place here on the streets around the capital for weeks.

Usually, this budget situation in Tennessee wraps up May, June at the very latest. This is a historic session for a lot of bad reasons this year. Nothing is really solved, and our budget is still in limbo, and our fiscal year began July 1st. It's a very volatile situation. We expect the legislation to come next week, and so very interesting time to cover politics here in Tennessee.

PHILLIPS: Lydia, I was going to say, this seems sort of odd to all of us here. But what about you? You are from there. Is this budget drama a normal thing do. Do people usually turn out like this?

LENKER: Usually, I have covered the state capital for the -- politics here for 15 years. Only the last few year has it gotten like this. It's democracy in action, it's great to see all of these people out here. There have been concerns in the past when they've come up with some broken at windows at the capital. That's why the security is so tight. But you know what? It doesn't get any better to see the people interested in their government. Usually no one is up here, so it's quite a civics lesson for a lot of the people. There's a lot of children here, too. School hasn't gone back yet, so it's a big education for everybody, Krya.

PHILLIPS: Yes, I bet you learn more there than in the classroom.

Now, Lydia, you've been covering this beat for 15 years. Is this going to make a difference?

LENKER: You know, Lydia, every time this happens, and lawmakers will agree on both sides on this issue, they get a little closer to passing the income tax. It could very well happen. It may not happen in the next few weeks. We have a governor's race coming up. It's going to be a huge race, you know, a huge issue there as well. I think it's inching closer, and the people want you to feel that that there's a revenue problem here. These people feel that the government's spending too much money, so it's really up in the air, and if I could place a bet on this one, I'd be rich. But really no one knows what's going to happen yet, Kyra.

PHILLIPS: All right, Lydia Lenker from our affiliate WTVF, thanks so much -- Daryn.

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