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Bill Lee Tennessee Inauguration: Jan 2019 7 TN Next Election: 2022 State Control Party Governor Party Republican Republican OVERALL RANK

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Bill Lee Tennessee Inauguration: Jan 2019 7 TN Next Election: 2022 State Control Party Governor Party Republican Republican OVERALL RANK Bill Lee Tennessee Inauguration: Jan 2019 7 TN Next Election: 2022 State Control Party Governor Party Republican Republican OVERALL RANK PREVIOUS GOVERNORS AND PARTY AFFILIATION Results Rank (1=best, 50=worst): Bill Haslam 2011-2019 A situational measure based on Phil Bredesen 2003-2011 7 the state’s economic outcomes Don Sundquist 1995-2003 (equal-weighted average).These variables are highly influenced by Ned McWherter 1987-1995 the Governor’s policy. RESULTS RANK SENATE 15% 85% Policy Rank (1=best, 50=worst): Democrat 5 Republican 28 A Measure of policy stances and decisions based on each Governor’s 8 legislative history regarding 6 key HOUSE areas (equal-weighted average). 26% 74% POLICY RANK Democrat 26 Republican 73 KEY PERFORMANCE INDICATORS RANK ABOUT GOVERNOR BILL LEE TAX POLICY Taking office in 2019, Governor Bill Lee presides as Sales, Personal Income, Fuel, and Other Tax Changes 24 Tennessee’s executive during one of the most vibrant periods of growth the state has seen. In fact, Tennessee’s economy is the eighth-strongest of any state. Despite SPENDING POLICY an influx of new tax dollars into the state, Gov. Lee has Proposed and Enacted Changes in State Spending 12 kept spending growth low. Reining in the growth of government also enabled Gov. Lee to enact net tax cuts in 2019 with the near-elimination of the professional licenses CARES POLICY tax, scaling back the amusement tax and the excepted Handling of Federal Funds as of July 2020 15 full phase out of the “Hall Tax” in January 2021. Once the Hall Tax on interest and dividend income is eliminated, Tennessee will officially have no tax on any form of UNION POLICY Public Employees, Public Employee Raises, personal income. Keeping spending growth low has also and Prevailing Wage Laws 5 enabled Tennessee to have the best financial standing of any state. Tennessee’s bonded debt amounts to less than 2% of state GDP, and unfunded pension liabilities WELFARE POLICY amount to less than 1% of state GDP as well. If Gov. Lee Welfare Spending per Capita 17 maintains his record as one of America’s most fiscally conservative governors, it is likely his ranking will only EDUCATION POLICY improve from seventh place out of all 50 governors. School Choice Participation, NAEP Scores, and per Pupil Spending 6 72 ALEC | American Legislative Exchange Council 2020 THE LAFFER-ALEC REPORT ON ECONOMIC FREEDOM GRADING AMERICA’S 50 GOVERNORS RESULTS 1 14 28 8 DEBT RANK SPENDING RANK PREPAREDNESS RANK ECONOMIC RANK TAX POLICY DATA RANK State Spending Top Marginal Personal Income Tax Rate 0.00% Yearly Spending per GSP, 2009-2019: 1 12% Top Marginal Corporate Income Tax Rate 6.50% 22 11% Inauguration 10% Personal Income Tax Progressivity (change in tax liability per $1,000 of $0.00 income) 2 9% 8% Property Tax Burden $19.85 (per $1,000 of personal income) 5 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 Sales Tax Burden $31.57 (per $1,000 of personal income) 41 2020 Unemployment Rate Monthly Unemployment Rate from January to July, 2020: Remaining Tax Burden (per $1,000 of personal income) $19.05 30% 31 25% Estate/Inheritance Tax Levied No 20% 1 16% 15% 11% 10% 10% Recently Legislated Tax Changes 10% (2018 & 2019, per $1,000 of personal $0.05 income) 20 5% 3% 3% 3% 0 Debt Service as a Share of Tax Revenue 5.8% Jan Feb Mar Apr May Jun Jul 23 THE LAFFER-ALEC REPORT ON ECONOMIC FREEDOM GRADING AMERICA’S 50 GOVERNORS 73.
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