Some Tennessee lawmakers think they've found a way to lower the state's food tax by 2%.
They want to close a business-tax loophole to fund another reduction to the food tax. The legislation would require multi-state corporations and their subsidiaries to report their profits together. Currently, these businesses can shift earnings to an out-of state subsidiary, avoiding Tennessee's corporate profits tax.
The group "Tennesseans For Fair Taxation" launched a state-wide campaign today in support of the plan. Ron Naylor, a member of TFFT, says "with the third highest food tax in the nation, every Tennessee family is still paying the equivalent of 28 days worth of groceries each year. For many that means a heating bill doesn't get paid in order to make up for the high grocery tax."
Naylor hopes raising awareness about the Food and Business Tax Fairness bill will prevent lawmakers from using its revenue for other purposes.
TFFT produced this video to explain how the business tax loophole works:
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