Let's close some loopholes!

The state of Washington has a good idea:



Tennessee is facing a $1 billion revenue short fall this year and Governor Haslam  has offered to cut money from every department. He said in the state of the state address that our universities must "do more with less." Setting aside how such a task is accomplished, below is a simple and just answer to raising revenue. It is not a new tax, it is simply collecting taxes that Tennesseans are already owed. Let's close some loopholes and save some services at the same time. Seems the only reasonable thing to do.

Tennessee Small Business Protection Act (SB1614/HB1914)

Sponsored by Senator Marrero and Representative Stewart

Tennessee’s business tax laws allow multistate companies to avoid taxes by setting up sham subsidiaries in Delaware or Nevada to transfer ownership of their real estate or trademarks and logos. They then deduct their payments to their own subsidiaries from their Tennessee income, thus avoiding TN taxes. The bill:

• Provides for “Combined Reporting,” a comprehensive solution to this “Las Vegas loophole”.
• Allows TN to receive tax revenues on a fair proportion of the companies’ revenues.
• Reduces the state sales tax rate on grocery food by 1% and leaves the local option unaffected.

Impact: The bill levels the playing field for Tennessee small businesses that pay TN taxes. More than half of the states use combined reporting. It’s time for Tennessee to join the majority.