Franchise Tax Repeal Uncertainty: Senate and House Disagree on Refund Amounts
Conference Committee Looms: Tennessee Legislators Seek Compromise on Franchise Tax Repeal
According to Tennessee, Tennessee’s plan to get rid of its Tax Reform and Refunds to taxpayers is up in the air. The Senate didn’t agree with changes the House made so now they might have to talk it out in a conference committee. Both sides want to scrap the business franchise tax which brings in about $400 million each year but they can’t agree on how much money to give back from past tax payments. The House wants to give back $713.6 million which is one year of franchise tax while the Senate wants to give back $1.6 billion which covers three years.
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(PHOTO:Tennessee Conservative)Tennessee’s Tax Overhaul Stuck in Limbo: Senate and House Disagree on Franchise Tax Reform and Refunds Distribution
Transparency Debate: Tennessee Lawmakers Clash Over Disclosure of Refund Recipients
The big issue is how to hand out the refunds and tell people which companies are getting them. The House wants to make sure the companies getting refunds are listed on Tennessee’s Department of Economic and Community Development website. They also want those companies to use any tax credits they got first. But the Department of Economic and Community Development doesn’t show which companies get tax credits even though the Tennessee Department of Revenue says there were $1.1 billion in tax credits last year mostly for machinery and new jobs. This disagreement is about more than just money. It affects businesses and regular people and it shapes how Tennessee’s economy works. Lawmakers have to figure out a compromise in the conference committee. They need to balance giving tax breaks with making sure the state has enough money for important things. Whatever decision they make will set the direction for Tennessee’s taxes and business world showing how money, taxes and government work together.
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