Democratic lawmakers in Tennessee have introduced a new policy that could affect wallets around the state.
This story continues below.
The legislation would address a potential budget deficit from the act by closing corporate tax loopholes and instituting a corporate minimum tax.
“State tax records shows that a majority of Tennessee businesses currently pay no state income tax, including a quarter of corporations that report over $1 billion in income,” writes the release from the Tennessee State Democrats. “Multinational corporations operating in Tennessee have exploited loopholes to dodge nearly $900 million in state income taxes by sheltering profits in foreign tax havens.”
The release goes further to differentiate itself from previous efforts to repeal the grocery tax, stating that previous efforts have failed to address a potential loss in tax revenue.
“We’re talking about something simple: Fairness. Right now, working families pay taxes every time they buy groceries, but many billion-dollar corporations operating in Tennessee pay little or no corporate taxes. That’s backward,” said Rep. Behn. “Families are paying more for milk, eggs, bread, and baby formula than they were just a few years ago. To Republican leadership, it’s time to get serious about ending the grocery tax, instead of cosplaying. Get it done now so Tennesseans can feel relief at grocery stores.”
The bill is scheduled for its first hearing in the Senate Finance Subcommittee on March 17, 2026.
Dining and Cooking