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Bredesen: End tax exemption for family businesses Erik Schelzig, Associated Press, KnoxNews.com NASHVILLE — A lean budget year and a tax loophole that is saving some family owned businesses roughly $45 million could turn into the first showdown between Democratic Gov. Phil Bredesen and the new Republican majorities in the General Assembly. Bredesen, who is contemplating layoffs of state workers to help Tennessee bridge a budget shortfall that could grow to $800 million by June, called the exemption for family-owned rental properties “a fairly outrageous loophole.” But Senate Republican Leader Mark Norris, of Collierville, says he doesn’t think it’s a good time to raise taxes for family-owned businesses. The administration tried to do away with the tax break last legislative session, but the effort ran into bipartisan opposition. Bredesen characterizes the measure as having been “mugged” by lawmakers. More details as they develop online and in Monday’s News Sentinel. |
