24 big firms collectively save $57M per year under Haslam corporate tax break plans
Gov. Bill Haslam’s administration has calculated that one provision in the governor’s tax package would collectively give $113.8 million annually ib tax breaks to 518 Tennessee companies with just 24 big firms get more than half the benefits in corporate tax cuts, reports the Times-Free Press.
Haslam calls his tax package the IMPROVE Act; other supporters have begun calling it The Tax Cut Act of 2017. It increases gas and diesel fuel taxes while lowering the sales tax on groceries and some other levies – most notably a break for manufacturers in payments of franchise and excise taxes. The newspaper says it got a copy of the administration analysis, which has not been released publicly.
Twenty-four large manufacturers would see annual reductions of $1 million or more in their state franchise and excise taxes, according to the analysis obtained by the Times Free Press and verified by two legislative sources. Those tax breaks would account for $57.44 million, or 50.7 percent, of the total $113.3 million.
Another 145 companies would see tax cuts between $100,000 and $1 million, for a collective reduction of $47.95 million. All told, 93 percent of the proposed change, or $105.4 million, would go to companies that would save $100,000 or more. Some 349 smaller companies would share a $7.89 million reduction., according to the analysis.
Haslam said the manufacturers’ tax cut is aimed at encouraging existing companies to boost investment and new ones to locate to Tennessee by letting them choose the formula for calculating their franchise and excise tax burden.
…The analysis does not identify specific companies impacted. State law prohibits public disclosure of most taxpayer information.