NASHVILLE, Tenn. (WKRN) — While much has been said about where Governor Bill Lee wants to spend money in his proposed state budget, some tax-cutting proposals have not gotten as much attention.
One of the measures outside the governor’s budget comes from Assistant House Majority Leader Ron Gant who would like to make cuts in the state’s excise tax which is levied against businesses’ gross earnings.
Representative Gant hopes to cut the six-point-five percent yearly by a tenth of a percent for the next five years if the state’s growth rate is over 2-percent.
“The gist of it is to give money back to those local businesses and hopefully they re-invest,” said Gant last week while outlining his bill.
He sees that re-investment for businesses as “new employees” and “expanding their business.”
Gant’s House Bill 2301 has various triggers to revert back to the current 6.5% for the excise tax if the state’s economic growth slows down dramatically.
Governor Lee’s main tax-cutting measure centers on what is called the state’s professional privilege tax.
“Its only fair that when a state is fiscally healthy, some of the money is returned to the taxpayer,” the governor said during his annual State of the State address on February 3rd.
He added that halving the $400 yearly fee paid by doctors, lawyers, and other professions would add “40-million dollars to individuals and small business owners who pay this arbitrary and unfair tax.”:
Cutting the excise tax by a tenth of a percent would save business owners statewide about 18-million dollars.