A federal tax cut could possibly boost Tennessee's economy enough to

increase sales tax revenues, according to Matt Murray, an associate

professor of economics at the University of Tennessee.

A federal tax cut would encourage consumers living in the state of

Tennessee to spend more money, therefore increasing sales tax revenues to

the state, Murray said in a recent press release from the UT News


"A large, one-time tax cut would increase consumption and spending and

buoy the sales tax base," Murray said. "That would be of considerable help

to Tennessee's economy, which relies more heavily on sales tax than most


Republicans in the United States House of Representatives have proposed a

10-year $792 billion tax cut. However, a long-term tax cut may urge people

to save the extra money rather than spend it, Murray said.

"The same tax reduction over 10 years would have less impact on the

state's economy," Murray said. The long-term tax cut would also have less

of an effect on the U.S. economy, Murray said.

Many Tennesseans are not interested in a federal tax cut, said Bill Lyons,

a political science professor.

"Those proposing tax cuts are finding there is not a large Tennessee

constituency out there demanding a tax cut right now," Lyons said.