Gov. Bill Haslam made an appearance on CNBC with host Rick Santelli yesterday to answer questions on Tennessee's not having an income tax.
During the brief segment, the governor said he hoped other states would continue levying income taxes on residents to ensure a competitive advantage for businesses that would be attracted to Tennessee's tax status.
"I hope they keep a very high cost structure and a high tax structure in place," Haslam said. "Eventually, people who have capital are going to decide to deploy that capital where it's going to get the best return. They don't know boundaries."
Haslam cited the recent development of Volkswagen's Chattanooga plant as an example that took the state's no-income-tax status into consideration as a reason for locating their operations in Tennessee.