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.

Pressure on Amazon Builds - Tennessee Should Join Other States in Standing Strong

The Atlantic Monthly is just the latest voice joining the call for Amazon to follow the law and collect the sales tax in states where it has a physical presence. As you've read here, Amazon has agreed to build two distribution centers in Tennessee's Hamilton County. But in addition to $30 million in incentives the state and local governments have already handed it as part of the deal, Amazon is now demanding special treatment in the state's tax laws to gain an even bigger competitive edge over our local businesses: exemption from having to collect the sales tax in Tennessee.
Amazon can afford to collect the sales tax. Tennessee cannot afford to lose this revenue to give a corporate bully millions in handouts. As other states recognize Amazon needs their strategic distribution locations as much as the states need Amazon jobs, the leading Internet retailer will be forced to stop its bullying tactics and play by the rules. Tennessee's legislators should stand up for their constituents, support their local businesses, and demand that Amazon follow the law. Go here to let your legislator know you support local businesses and want Amazon to collect sales tax, and support legislation that would close corporate tax loopholes like the ones Amazon uses to game the system:
The Out-of-State Sales Tax Act would require any company selling more than $4,800 in goods annually to Tennesseans to collect the sales tax. Amazon would be included, and the issue of a special exemption would be moot.
The Tennessee Small Business Protection Act would implement combined reporting in Tennessee, a reporting method most states use to ensure corporations are taxed on their considerable income and contribute to the infrastructure they require in their business operations.
The issue of corporate tax avoidance and corporate bad behavior in attempts to increase the wealth divide and defund our public structures and the jobs they provide are gaining attention. Join the growing numbers of TFT members and supporters across the country supporting our public structures, public workers, and investments in programs that benefit ALL of us, not just the wealthiest 5%.