New report on corporate tax loopholes strengthens Democratic push to repeal Tennessee’s grocery tax

Sen. Oliver, Rep. Behn would repeal state grocery tax without cutting services by closing corporate tax loopholes to replace lost revenue

NASHVILLE — A new report reveals that global corporations operating in Tennessee are dodging nearly $900 million in state income taxes by hiding profits in foreign tax havens. This massive revenue loss comes at the expense of hardworking Tennesseans, as these corporate giants exploit loopholes to avoid paying their fair share.

Sen. Charlane Oliver and Rep. Aftyn Behn have introduced legislation to close this loophole by adopting worldwide combined reporting — a proven tax policy that would ensure multinational corporations pay taxes on all their profits, including those hidden away in foreign tax havens.

The revenue from this policy would be used to eliminate Tennessee’s grocery tax, offering real relief to working families without cutting a dime from critical services like schools, healthcare, or infrastructure. The choice before the legislature is clear:

Their legislation, the “End the Grocery Tax by Closing Corporate Loopholes Act,” sets up a clear choice for the legislature: Protect corporate tax dodgers or provide meaningful cost savings for Tennessee families by ending one of the highest grocery taxes in the nation.

Statement from Rep. Aftyn Behn (D-Nashville):

“Today’s shocking report confirms what we’ve been saying all along: Tennessee can eliminate the grocery tax — without cutting essential services — by closing corporate tax loopholes. Through worldwide combined reporting, we could bring in nearly $900 million — funds that should be going to our schools, roads, and healthcare, not hidden in foreign tax shelters. It’s time to stop letting multinational corporations dodge their fair share while hardworking families shoulder the burden.”

Statement from Sen. Charlane Oliver (D-Nashville):

“This report is a wake-up call. Tennessee’s working families shouldn’t have to pay one of the highest grocery taxes in the nation while billion-dollar corporations hide profits overseas. By closing corporate tax loopholes, we can generate nearly $900 million in revenue — enough to eliminate the state grocery tax without cutting a single dollar from schools, infrastructure, or healthcare. The choice is clear: help working families or keep letting big corporations game the system.”