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Closing Corporate Tax Loopholes with Combined Reporting

The Food & Business Tax Fairness Act (SB0502/HB1350 by Sen. Tim Burchett and Rep. Charles Sargent), would end a wide range of tax evasion strategies, that allow large, multi-state corporations to avoid paying the same taxes that our locally-owned and operated businesses must pay. Part of the revenue recovered from this reform would be used to pay for a modest reduction in the state food tax with the balance going to help meet the current budget shortfall.

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October 15, 2007

Tennessee is a low-tax state, but for who?

Some opponents of a food tax cut argue that we don't need to cut the food tax because Tennessee is already a low-tax state. However, according to a 2003 report, “Who Pays? A Distributional Analysis of the Tax Systems of all 50 States,” nearly half of all Tennesseans, the bottom 40% of income earners, actually pay higher state and local taxes than the national average for the same income groups.

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The report further notes that Tennessee has one of the most inequitable tax systems in the nation where low-income families pay over three times the taxes as a portion of income than the state's most affluent.

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