How would the Food & Business Tax Fairness Act benefit Tennessee businesses?
A. Small and medium-sized businesses that operate only in Tennessee (and perhaps a few multi-state businesses that voluntarily pay their full Tennessee taxes) are subsidizing those multi-state businesses that avoid TN taxes. Such businesses minimize their TN taxes through elaborate restructuring of their subsidiary businesses to take advantage of loopholes in Tennessee’s tax code. If all multi-state corporations paid their full tax obligations, we could all pay less tax on our food, and future tax increases could be delayed or avoided altogether. Also, businesses that compete directly with large multi-state corporations might be able to compete more effectively when their competitors have the same tax obligations.
