A Sign of Things to Come? TN Democratic Party Refuses to Support Governor’s Legislation to Close Tax Loophole for Wealthy

Thu

Mar 5 2009

01:19 pm

By: knoxrebel

Governor Bredesen wants to repeal the tax exemption for family-owned noncorporate entities (known as FONCE) that own commercial real estate. Bredesen calls it a “fairly outrageous loophole” which benefits a few wealthy families, giving them an unfair advantage over other commercial real estate investors. According to the State's Revenue Commissioner, closing the loophole would generate at least $15 million in much-needed money for the state, while other estimates put the number at triple that amount. Also, state records show that $1 billion worth of exempted commercial rental properties owned by FONCEs are owned by non-resident investors.

In the midst of his effort to repeal the FONCE tax exemption, Bredesen is receiving little support from Gary Odom, House Democratic leader, Chip Forrester, new Chair of the Tennessee Democratic Party and himself an income tax proponent, and Bill Freeman, new state Democratic Party treasurer, who happens to be one of the beneficiaries of the exemption. Asked by Nashville’s Pith in the Wind whether he thinks lawmakers should close the loophole, Forrester replied,

"I really don't know." Forrester added, "[t]hat's sort of a legislative matter. . . and I think I'll stay out of the middle of that one." Forrester was asked about Freeman, and replied, "I haven't spoken with him. I'd be uncomfortable speaking for him on it until I know where he stands . . . I'd like to ask him first before I speak on his behalf. I'd be glad to talk to him and get back to you."

So, with Republicans lining up to oppose this repeal of a tax break for the rich and with Tennessee Democrats presented with a great opportunity to show voters that they represent working Tennesseans, the state Democratic Party Chair has decided to remain neutral on a bill proposed by a Democratic governor to make the rich pay their fair share of taxes. And what’s Forrester's rationale? Supporting the Governor’s plan to close the FONCE exemption might upset Freeman, Forrester’s new red-giving treasurer and bud of Odom. How can Forrester reconcile his support for an income tax with his apparent opposition to closing a tax loophole for the super wealthy. Aren't Democrats supposed to be for the little guy?

Bottom line: the chairman of the Tennessee Democratic Party, a man elected on the heels of President Obama’s sweeping “Change We Need” victory, won’t support a Democratic Governor, often maligned as too GOP-friendly, in his effort to close a tax loophole for the wealthy. If Forrester and Freeman are actually trying to patch up their on-going feud with Bredesen, me thinks this is not the way to go about it.

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yes, this is a bad move

Submitted by LeftWingCracker on Thu, 2009/03/05 - 1:43pm.

And I know Freeman has been squawling about it, but we need to support Bredesen on this.

When the hell did Phil Bredesen turn into a supporter of the little guy? Is this the Bizarro Phil and we just don'l know it?

It's super-ironic that it is

Submitted by knoxrebel on Thu, 2009/03/05 - 3:03pm.

It's super-ironic that it is Bredesen who is pushing for an end to the loophole and it is Forrester, Freeman, Odom, et al. who are either sitting back and watching or flat ut opposing Bredesen on this one.

More info: Forbes: $1B of

Submitted by R. Neal on Thu, 2009/03/05 - 1:44pm.

More info:

Forbes: $1B of tax exempt properties owned outside Tenn. According to the report, there are more than $5.1 billion in exempt properties.

(Also, don't you mean "Republicans are lining up to oppose ENDING this tax break for the rich..."?)

Thanks, Randy. I didn't

Submitted by knoxrebel on Thu, 2009/03/05 - 3:04pm.

Thanks, Randy. I didn't catch that until after the post. And thanks for the numbers.

Sanity

Submitted by Harrison (not verified) on Thu, 2009/03/05 - 2:38pm.

It's good to see someone putting sanity in this forum, rather than the blind fealty in favor of Chip Forrester. Forrester sold Tennessee Democrats a bill of goods. We saw it in his appointment of Bill Freeman, who helped fund racist attacks against Harold Ford. And we see it again in his refusal to put education first and speak out against the wealthy tax loophole that Bredesen is trying to close. Those who supported Chip 4 Chair should be hanging their head in shame right about now. He's a weasel who puts himself first, not the party.

rather than the blind fealty

Submitted by R. Neal on Thu, 2009/03/05 - 2:40pm.

rather than the blind fealty in favor of Chip Forrester

Can you site us some of that?

Let's see ...

Submitted by Harrison (not verified) on Thu, 2009/03/05 - 2:54pm.

How about this? Exhibit A: You are refusing to call bullshit on Chip and denounce Bill Freeman, who benefits from this loophole at the expense of average Tennesseans.

How about this? Exhibit A:

Submitted by R. Neal on Thu, 2009/03/05 - 3:40pm.

How about this? Exhibit A: You are refusing to call bullshit on Chip and denounce Bill Freeman, who benefits from this loophole at the expense of average Tennesseans.

Don's been doing a fine job covering it, and he's the man to do it as he knows a lot more about what goes on in the TNDP than I do. And I have said in comments on his posts that the Freeman thing is troubling, as it should be to any TN Democrat. I also freely admit to not knowing any of the players in this drama, so I leave it to the experts who do to enlighten us. You are not one of those.

Anyway, why don't you run along back over to the Scene and the Post and continue stinking up those joints. We were doing just fine before you trolled in and we'll get along OK without you.

I have only sworn blind

Submitted by WhitesCreek on Thu, 2009/03/05 - 2:54pm.

I have only sworn blind fealty to Bubba.

Bredesen's right, TNDP's wrong

Submitted by knoxrebel on Thu, 2009/03/05 - 3:15pm.

So, is this one of those, "uh oh, you're guilty by association" things then? Seriously, I'm sure alot of folks on the progressive blogs want Forrester to succeed and do what he said he was going to do. And I also think that many of those same posters are, at least at this point, very disappointed in what is going on with the TNDP, and are still hoping that Forrester turns it around. But his thus far 5-week long tenure could not have been much worse.

This issue transcends partisan politics and Forrester needs to get on-board and support Bredesen. He won't, but he should. Yet another appearance of just looking bad and like he doesn't know what he is doing.

Can you really have faith in

Submitted by Lobster on Thu, 2009/03/05 - 3:31pm.

Can you really have faith in anyone that wears a bow tie? Seriously.

Hey, Judge Bill Swann wears

Submitted by knoxrebel on Thu, 2009/03/05 - 3:42pm.

Hey, Judge Bill Swann wears a bow-tie...uh, oh...yeah, I guess you're right on the money, Lob.

TN Democrats in a pissing

Submitted by rocketsquirrel on Thu, 2009/03/05 - 3:51pm.

TN Democrats in a pissing contest? what else is new?

I think it's time to end partisanship. Since at least a third of Knox County voters are independent, and more are every day, I think Herb Moncier should sue the Knox County Election Commission, demanding that there only be TWO Republicans and TWO Democrats, and that TWO Independent seats be added. (there are currently 3 GOP and 3 Dem seats.)

Independents in Knox County are not currently represented by the Election Commission.

Odom and Freeman are

Submitted by jbr on Thu, 2009/03/05 - 3:49pm.

Odom and Freeman are effectively 'trojan horses' it seems

TNDP-R.I.P.

Submitted by TNDP-RIP (not verified) on Thu, 2009/03/05 - 5:57pm.

TNDP-R.I.P.

DP Knox County-R.I.P?

Submitted by knoxrebel on Thu, 2009/03/05 - 6:42pm.

That might also apply to the Knox County Democratic Party, as shown in a separate thread dealing with Forrester's announcement that he has "put down" the rebellion regarding Freeman.

I never supported Chip

Submitted by JaStep (not verified) on Thu, 2009/03/05 - 7:56pm.

I never supported Chip because he has been a part of the backroom Democratic Party establishment for years. He has been on the executive committee for a quarter of a century. He conned some of the college kids and community organizers into thinking he was a \"real\" Democrat, a grassroots kind of leader, but the executive committee elected him because he was one of them.

I am not surprised by any of this. Chip is no leader, and he is in Gary Odom\'s back pocket. Odom has the ethics of the proverbial fox in the hen house. If we are ever going to revitalize the state party, we have to rid it of the Odoms, the Chips, and the Bill Freemans. They only want power to protect their interests and line their pockets.

A party chairman shouldn\'t get involved in legislative issues??????? Since when? That\'s part of a party chair\'s job.

No Time For A Charlatan

Submitted by knoxrebel on Fri, 2009/03/06 - 1:26am.

It's interesting that you say that, because just today I was discussing Forrester's history with an Upper East Tennessee Ex-Com member who has been on the Ex-Com for a long time, and who supported Forrester. The scenario that played into Forrester's favor was that the so-called "new" Obama Democrats (and by that, I mean grassroots activists whose initiation into the political world began with their interest in President Obama's campaign) were looking for an experienced leader who knew "the political game," and well, they just didn't know any better. He looked like the real thing. He talked like the real thing. He made them believe he was the real thing. And now, some are realizing that he may be a charlatan.

And many Ex-Com members - who have known him a long time - took him at his word and voted for him, some because he had purportedly "paid his dues," some because he supposedly got out in front during Obama's march to Denver, and others because Forrester was already engaged in a feud with the Governor who they would never support. That unlikely combination - along with the perception by Obama grassroots volunteers that Forrester was an "outsider" when in truth he was Odom's ultimate insider - nailed it for him.

Now where are we? We have as our State Party Chair a man who appears to go out of his way to pick fights with the titular head of the Party and its highest elected official,the Governor, who has chosen as the Party's treasurer yet another opponent of the Governor (and a red-giver at that), and whose closest political ally is Odom, who now appears to oppose the Governor at every turn, especially since the Governor designated someone else to carry-out his administration's legislative agenda.

This does not bode well for Democrats in 2010. Most candidates will go out of their way to run campaigns independent from the TNDP in 2010. And insofar as recruiting candidates goes, what Democrat worth having his or her name on the ballot is going to allow him or herself to be recruited to run for office by a Party Chair who is perpetually embattled in his own party and at odds with the Democratic Governor on a daily basis?

yes

Submitted by gonzone on Fri, 2009/03/06 - 12:29pm.

A party chairman shouldn\'t get involved in legislative issues??????? Since when? That\'s part of a party chair\'s job.

I totally agree. And furthermore this would be good advice for the DNC national chair, Tim Kaine. Get involved, take a lesson from Dean.

"The arc of the moral universe is long, but it bends toward justice."

Good reporting, KnoxRebel.

Submitted by Heatseeker (not verified) on Fri, 2009/03/06 - 12:22am.

Good reporting, KnoxRebel. Now other media outlets are picking up on the fact that Freeman takes advantage of the FONCE loophole to protect his millions.

(link...)

Other than Freeman, you also have a New York strip club owner getting about $55 million tax free.

Way to go, Chipper. Stand up for your developer buddy and those out-of-state porn moguls.

Why does Ex-Com not call Forrester out?

Submitted by knoxrebel on Fri, 2009/03/06 - 1:33am.

Hey Heat, why do you think the State Party Executive Committee is being so weak-kneed about calling Forrester out on all of this crap? They can do it. I mean, his 5 weeks have been an absolute nightmare, and it isn't getting better, it's getting worse. Say what you will about Gray Sasser, but Gray was a smart guy, and he didn't screw up this much in the 2 full years he had as Chair.

Forrester, Freeman, Odom support tax break for NY strip club

Submitted by knoxrebel on Fri, 2009/03/06 - 2:08am.

Pith in the Wind reports that Nashville Channel 5's Phil Williams rolled a New York strip club owner, Tennessee Democratic Party Treasurer Bill Freeman, House Democratic Leader Gary Odom, and House GOP Leader Jason Mumpower all into one big giant ball

and slung it at supporters of the state's tax loophole for real-estate moguls. It was beautiful.

"It's a Tennessee tax break meant for families," Williams' report began. "So how did a so-called strip club 'king' from New York end up taking advantage of the legal loophole?" Williams reported that not only does adult entertainment czar Sam Zherka benefit from Tennessee’s FONCE tax exemption, so do out-of-state investors from 43 other states, escaping Tennessee taxes on more than $1 billion in commercial property.

Pith reports that Williams caught Mumpower's in a classic “deer-in-the-headlights” moment when Mumpower said: "Family-owned businesses are part of what has made this state and this nation great." After Mumpower was informed about the NY strip club owner, Williams the asked, "Is that your idea of a family-owned business?" Mumpower replied, "That wouldn't be, no."

Pith also reports that Odom also looked

suitably stupid and knavish too as he tries to defend his support for the tax break and for his Belle Meade buddies.

Thus, day by day, the nightmare that is now the TNDP keeps getting worse, with Forrester, Odom, and Freeman siding with GOP leader Mumpower and a NY strip club owner.

While the "benefit of the

Submitted by Andy Axel on Fri, 2009/03/06 - 11:41am.

While the "benefit of the doubt" blog coalition (vis-a-vis Forrester) is remaining rather tight-lipped about this situation, I think it may be time to break the silence about the questions this all raises.

Too long have the TN Democrats had middling, petit tyrants running the legislature and the party as a insiders' fiefdom. And if Gary Odom is now the heir apparent to Jimmy Naifeh, well... that ought to be a clue and a half as to how dire the situation is becoming.

I'm all about having an alternative to Bredesen, and have been for a long time. This isn't the way to do it, though. Bredesen is a lame duck, so all of this crossing of urine streams seems more than a bit after the fact*. I can't think of a more fitting comeuppance for Gov. B. than to have to swelter out his remaining term having to address the needs of the people he has long forsaken; this while every cherry opportunity for him to jump inside the Beltway passes him by, leaving a rolling thunder of negative press in his wake.

One part of me says that maybe his stand on FONCE is a deathbed conversion... but the other part of me says it's a politically canny (!) way to (a) raise some much needed capital for the capitol, while (b) rapidly revealing the demerits of his detractors. I'll hand it to the l4m0r... he doesn't go gently, &c.

I understand the premise of making a show of unity here, but it's not a "circular firing squad" if you only have a couple people against the wall.

* Yes, present company more than included in that assessment.

____________________________

Dirty deeds done dirt cheap! Special holidays, Sundays and rates!

It's awfully nice of

Submitted by Lobster on Fri, 2009/03/06 - 1:16am.

It's awfully nice of Forrester to suggest he'll check with Freeman and get back regarding his stand on the FONCE exemptions. Let's see, Freeman has taken advantage of the exemptions to save himself a large chuck of change, but we have to check with him to see if he thinks they are a good idea? Maybe he's had a change of heart now that he's ready to be a "good democrat" and he'll just not take advantage of the loophole in the future. Sure, that's got to be it.

This new state party is going to be great. They'll raise money by the truckload and won't have to spend a penny toward anything that's a legislative matter. Party on Garth.

Why won\'t the exec comm do anything?

Submitted by Heatseeker (not verified) on Fri, 2009/03/06 - 9:13am.

Well, KnoxRebel, I agree with a previous commentor: the executive committee is part of the scam. They elected Chipper because he is one of them, has been for 25 years. They helped mislead the college students and community organizers. Frankly, they will stand behind Chipper because they are just as crooked and unethical as Chipper and Gary Odum. There needs to be a movement to oust most of them or at least beat them at their next re-election.

election august, 2010

Submitted by fatethomasghost (not verified) on Fri, 2009/03/06 - 1:22pm.

There are 4 members on the executive committee representing most of Knox Co. They are Slyvia Woods, Harold Woods, Gayle Alley and Bill Owens. The Woods strongly backed Forrester/Freeman and Sylvia continues to be a hard-headed apologist and supporter. Harold is a surprise since he is about as anti-GOP as you get. Gayle Alley went all-out for Bone and has been smacked around for it. Owen voted for Bone but has been accused of secretly working for Forrester/Freeman. This may or may not be true and maybe just a carryover reaction from some people who have watched him play both ends against the middle for over 30 years.

At any rate, the bottom line is this. Someone needs to run against the Woods and Owen in August, 2010. If you don't beat 'em, make 'em spend a pot full of money to be reelected. That's how you get even in politics.

Hey Ghost, I'm all for

Submitted by knoxrebel on Fri, 2009/03/06 - 3:37pm.

Hey Ghost, I'm all for competition in these usually overlooked Executive Committee races, but I don't know of anyone who actually spends money on them to get elected. It's most often a "popularity" contest and name recognition is all that matters. Of course, Bill Owen - by virtue of having been an elected officeholder in Knox for many years - and the Woods to a lesser extent, have been elected based upon their name recognition alone. If a Democrat actually got out and "campaigned" for one of these spots - if one of the races was contested at all - you'd likely see some much-needed change. I'm all for it. I'm not sure about Owen, but Gayle Alley is another matter and I'd have to help Gayle out for sure if anyone were to take a shot at her in '10. She has stood her ground on Forrester and Freeman when others have just wimpered away. Otherwise, hey, let's start recruiting people today!

Data and info on small-biz, FONCE, family-owned biz

Submitted by benintn (not verified) on Fri, 2009/03/06 - 4:41pm.

(link...)

I would suggest that before you argue that Bredesen is "standing up for the little guy," you take a look at what the FONCEs actually are.

These are mostly small, family-owned businesses. These are families with rental property. These are people with "mom and pop" stores, people who own storefronts.

To claim that the TNDP or Freeman or Forrester is "against the little guy" is just a little bit too far. Forrester is not taking a position on the issue. It's not as though he's taking Odom's side, or taking Bredesen's side. He's not taking a side.

Never mistake neutrality for support. Remember, too, that Chip Forrester's job is to represent ALL Tennessee Democrats, not one side or the other.

This is a complex legal and tax law issue. It doesn't lend itself to soundbites or simple solutions.

I do think that Bill Freeman should take a stand on the issue and be sure that he explains himself. But until he does, I'm just not going to join in the outcry.

Seems like I saw a possible

Submitted by jbr on Fri, 2009/03/06 - 4:54pm.

Seems like I saw a possible provision for smaller valued properties like $500k and under.

Do the smaller businesses that are not family owned but are two unrelated individuals get a break now?

benintn, or

Submitted by Heatseeker (not verified) on Fri, 2009/03/06 - 6:45pm.

benintn, or benintotaldenial, as I like to call you, you are an unprincipled apologist for Chip Forrester, a Chipinista shill. You will say anything or do anything to defend your boss.

Have you not watched the news? The FONCE tax break shields $55 million worth of property for a New York strip club king, gazillions for the ultrawealthy May family, and, of course, the millions in real estate dollars going to Bill Freeman. This tax break is about as mom and pop as Donald Trumps toupe.

Forrester was asked if he would support Bredesen, who is trying to close the loophole. He said he was staying out of it. That, you knucklehead, means he is not supporting Bredesen. If you oppose change to the status quo, then you support maintaining the status quo. Spare us the juvenile attempt at spin.

Furthermore, this issue is not complex at all. Chipper and Odom are covering a tax break for their developer crony treasurer. They are doing this in exchange for him pumping cash into their campaign accounts. Please explain the difference between this and Tennessee Waltz.

I have read you online defending the economic policies of President Obama, which revolve around revoking tax breaks for the super wealthy. How in the world do you gibe support for those with support for maintaining the FONCE?

You never had much credibility, ben, but your comments here have clearly outted you as a whore for Chip Forrester.

Or wait a minute,

Submitted by Heatseeker (not verified) on Fri, 2009/03/06 - 6:49pm.

Or wait a minute, benintotaldenial, did you get those talking points from Robin Smith? She had the balls to go on record with her position, unlike Chip, who cannot take a stand on anything, other than stammering out some pantywaist excuse for his latest misstep.

Ben is a Ho

Submitted by Harrison (not verified) on Fri, 2009/03/06 - 7:18pm.

Ben: Get in the car and backtrack a few miles. You apparently left your principles on the nightstand after you crawled into bed with Chip. Do you feel as slimy as you sound when you're defending fat cat developers who benefit from a wealthy tax loophole at expense of our public schools?

ODOM, FORRESTER PROTECT TAX

Submitted by Holly McBuck Wallace (not verified) on Sat, 2009/03/07 - 12:48am.

ODOM, FORRESTER PROTECT TAX BREAK FOR FAT CAT PAL
Join Robin Smith in Tennessee Version of Bushonomics

Contact: Eugene 615.429.0840

NASHVILLE – House Democrat Leader (in name only) Gary Odom and bumbling Tennessee Democratic Party chairman Eugene “Chip” Forrester today unveiled their abject whoredom to the world by announcing their opposition to Governor Phil Bredesen’s effort to close an indefensible tax giveaway to multimillionaire real estate tycoons, known in polite company as the FONCE.

“Look, folks, do you think J. Alexander’s is cheap?” Odom slurred. “Daddy’s gotta have some cash.”

While neither Odom or Forrester would admit their motivation on record, every adult Tennessean without severe brain damage realizes their opposition is motivated by the base desire to protect the FONCE of Bill Freeman, the multi-millionaire sleezeball real estate developer that just happens to be treasurer for Odom’s re-election campaign and what is left of Forrester’s TNDP.

“I have the nuts of an underdeveloped chipmunk,” Forrester said. “I couldn’t take a public position on anything if I wanted to.

“Gary and Bill might yell at me.”

Supporters of Bredesen’s effort argue that the state, faced with a budget shortfall of approximately $1 billion, needs the added revenue to fund public education and other necessary state services. The Tennessee Department of Revenue estimates that the FONCE loophole costs the state somewhere in the neighborhood of $45 million annually.

Told of this line of reasoning, Odom replied (with a noticably thick tongue), “Show me a third grader that can max out to my campaign and we’ll talk.”

Odom and Forrester’s opposition appears particularly slimy today following a scathing report last night from NewsChannel5 investigative reporter Phil Williams that revealed the tax loophole protects $55 million for a New York titty bar tycoon.

“Sweet!” Odom said.

Bredesen’s bill is being carried in the House by Democratic Caucus chairman, Myke Turner.

“WHAT THE FUCK?” Turner said when told of Odom and Forrester’s opposition. “NOBODY TELLS ME SHIT.”

Odom and Forrester’s announcement came a day after Tennessee Republican Party chairthing Robin Smith announced its opposition to Bredesen’s attempt to make our economic overlords pay their fair share of taxes.

Harrison and Heatseeker did not respond to requests for comment.

- 30 -

ODOM, FORRESTER PROTECT TAX

Submitted by Holly McBuck Wallace (not verified) on Sat, 2009/03/07 - 12:50am.

ODOM, FORRESTER PROTECT TAX BREAK FOR FAT CAT PAL
Join Robin Smith in Tennessee Version of Bushonomics

Contact: Eugene 615.429.0840

“Look, folks, do you think J. Alexander’s is cheap?” Odom slurred. “Daddy’s gotta have some cash.”

“I have the nuts of an underdeveloped chipmunk,” Forrester said. “I couldn’t take a public position on anything if I wanted to.

“Gary and Bill might yell at me.”

Told of this line of reasoning, Odom replied (with a noticably thick tongue), “Show me a third grader that can max out to my campaign and we’ll talk.”

“Sweet!” Odom said.

Bredesen’s bill is being carried in the House by Democratic Caucus chairman, Myke Turner.

“WHAT THE FUCK?” Turner said when told of Odom and Forrester’s opposition. “NOBODY TELLS ME SHIT.”

Harrison and Heatseeker did not respond to requests for comment.

- 30 -

What's wrong with being

Submitted by Nobody (not verified) on Sun, 2009/03/08 - 9:43pm.

What's wrong with being wealthy and why are y'all always wanting to squeeze more out of them? The wealthy are the folks paying state income tax and pay their fair share; how many of you folks here pay anything towards the state coffers beside sales tax? I'd love to be rich but hesitate because of you blood sucking socialists.

So

Submitted by gonzone on Mon, 2009/03/09 - 8:01am.

We have our first official "gone Galt" nobody!

What a pantsload! Wanna know what's keeping you from being wealthy enough to pay that extra tax? Your inability to become wealthy enough. Period. Liar.

"The arc of the moral universe is long, but it bends toward justice."

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