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A new report from the Institute on Taxation and Economic Policy (ITEP) has found that Tennessee is missing out on as much as $891 million in potential corporate tax revenue due to existing loopholes that allow large corporations to avoid paying their fair share.

As Tennessee families struggle with rising costs for essentials like groceries and child care, policymakers have continued to permit tax loopholes that benefit corporations at the expense of working families. The report emphasizes that adopting worldwide combined reporting, which curbs corporate tax avoidance by treating a corporation and all its U.S. and foreign subsidiaries as a single entity, could offer substantial financial relief to Tennessee residents. That revenue would allow Tennessee to completely eliminate the state grocery tax, saving families an average of $400 per year.

“With the rising cost of living, Tennessee families deserve policies that prioritize their well-being over yet another free ride for corporations,” said Vonda McDaniel, president of the Central Labor Council of Nashville and Middle Tennessee, and part of the TN4ALL coalition. “It’s time for policymakers to stand up for the people they serve and invest in our communities.”

Tennessee is one of just 10 states that tax groceries. Last year, legislators chose to pass a $1.6 billion corporate tax cut and refund but rejected a bill to eliminate the grocery tax. Recent reports have shown 62% of Tennessee companies already pay nothing in the state excise tax.

“It is no longer a question of whether or not our state can afford to stop taxing groceries; it is a simple choice between taxing families or taxing the biggest corporations,” said Brenda Sheilds, a member of SEIU Local 205, a partner of TN4ALL.