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WTVC NewsChannel 9 :: News - Local News

Tenn. House Unanimously Approves Food Tax Reduction

The Tenn. House has unanimously approved Gov. Bill Haslam's proposal to cut the state's sales tax on groceries.

If approved by the Senate, the state's tax on groceries would drop by a quarter percentage point to 5 percent. Lawmakers last year enacted a cut of the same amount.

The state's sales tax on non-food items is 7 percent.

The tax reduction is projected to cost the state about $23 million in state revenue -- or an average annual tax savings of about $3.56 for each Tennessean.

The companion bill is awaiting a vote in the Senate Finance Committee but is not expected to find much opposition.

Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Tenn. House Unanimously Approves Food Tax Reduction

Friday, April 5 2013, 01:26 PM EDT

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Last Update on September 23, 2014 08:16 GMT

CHINA-MANUFACTURING

HONG KONG (AP) -- Growth in China's sprawling manufacturing industry unexpectedly ticked higher in September, easing concerns about the No. 2 economy's recovery.

HSBC's purchasing manager index edged up to 50.5 this month from 50.2 in August, based on a 100-point scale. Numbers below 50 indicate contraction.

Analysts had expected the reading to fall for a second month, dragged down by the slumping property market.

The modestly upbeat number comes after an official report earlier this month showed China's factory output slowed sharply in August, which sparked fears momentum was fading and prompted some analysts to lower their full-year economic growth forecasts.

China's economic growth edged up in the April-June quarter to 7.5 percent after policymakers rolled out a batch of relief measures aimed at areas including railways and public housing. But analysts say further increments in growth will be hard to achieve without more government spending.

CALIFORNIA DROUGHT

LOS ANGELES (AP) -- Officials say the giant wholesaler that provides drinking water for half the California population has drained two-thirds of its stored supplies as the state contends with a punishing drought.

Without plentiful rain and snow in coming months, the Metropolitan Water District of Southern California could consider cutbacks to its regional distributors next year. If such limits are approved, that could lead to rationing or cuts for households in portions of Southern California.

At the current rate, billions of gallons in remaining agency reserves could be exhausted in about 18 months. The agency built up those reserves over time as a hedge against the state's periodic droughts.

But those supplies have tightened as the state has experienced a combination of sparse rainfall and unusually warm temperatures -- 2014 is on track to be the hottest year in California since record-keeping began over a century ago.

Gov. Jerry Brown, who declared a drought emergency earlier this year, is urging residents to voluntarily reduce water use.

NETHERLANDS-PHILIPS

AMSTERDAM (AP) -- Royal Philips NV says it will spin off its lighting division and the rest of its operations into two separate companies, continuing a radical reshaping of one of Europe's best-known corporations.

Tuesday's announcement follows the decision in June to spin off its lighting components arm, and it is no longer clear whether Philips is the world's largest lighting manufacturer, though it is a leader in cutting edge LED lighting technology

Chief Executive Frans van Houten said the company's consumer division -- which makes a range of household products such as coffee makers and shavers -- and its health care division will operate as a single "HealthTech" company. Both the lighting and HealthTech company will continue to use the Philips brand.WALL STREET-PROTEST

NEW YORK (AP) -- More than 100 people have been arrested in a sit-in protest in Manhattan's financial district in New York.

More than 1,000 activists blocked parts of Broadway Monday to protest what they see as the roles of corporate and economic institutions in the climate crisis.

The sit-in followed Sunday's march in which more than 100,000 people warned that climate change is destroying the Earth.

OVERSEAS TAX BREAKS

WASHINGTON (AP) -- The Obama administration is cracking down on American companies that are trying to reincorporate overseas to avoid paying U.S. taxes.

In a so-called "tax inversion," a U.S. business merges with or is acquired by a foreign company in a country with a lower tax rate.

The Treasury Department says it's putting forward regulations that will make inversions less lucrative by barring some of the techniques companies use to defer their taxes. It's also making it harder for companies to pursue an inversion by tightening the requirement that the company's former owners own less than 80 percent of the new company.

Treasury Secretary Jacob Lew says the steps will ensure that it's no longer financially beneficial for companies to use that tactic.

The new measures will take effect immediately.

DETROIT WATER SHUTOFFS

DETROIT (AP) -- Detroit's water department is defending its policy of cutting off service to people with unpaid bills. It says continuing to provide free service to those households could be "very devastating" to the department's budget.

An attorney for the water department told a judge Monday that "humanitarian concerns are very compelling," but that so is fairness.

After thousands of shutoffs earlier this year, there were protests and appeals -- including one to the United Nations.

The judge hearing the city's bankruptcy trial set aside that case Monday to hear evidence in the water controversy. A coalition representing low-income residents is asking the judge to suspend water shutoffs, and to restore service to people who have lost it.

The attorney for the water department said it would be violating state law, and breaking agreements with bondholders, if it's forced to supply water and ignore bills that are overdue.

An economist who testified on behalf of critics of the water shutoff policy said a consumer's income should be a factor in how the city regularly collects water bills.

The hearing will end today after testimony from water department officials and closing arguments.

MEXICO-MINING SPILL

CANANEA, Mexico (AP) -- Authorities in northern Mexico have issued a binational alert over contamination from a copper mine that spilled into a waterway that flows into Arizona.

Carlos Jesus Arias is director of the Sonora state civil protection agency. He says contamination from the Buenavista del Cobre mine in the city of Cananea has made it into the San Pedro River.

Officials haven't said how much leaked, or what was in the contaminants.

The mine is operated by Grupo Mexico. It issued a statement Sunday saying storm water overflow linked to the recent passage of Hurricane Odile (oh-DEEL') caused mine water to leach into some creeks and streams.

Civil protection officials are urging residents to avoid using the local water.

SEC-WHISTLEBLOWER AWARD

WASHINGTON (AP) -- The Securities and Exchange Commission is giving its biggest award yet, about $30 million, to a whistleblower who provided key information that led to an enforcement action in a fraud case.

The agency announced the award Monday. It was the SEC's 14th whistleblower award under a program adopted in 2011 and the fourth award to a whistleblower living in a foreign country. The nature of the enforcement action and the identity of the whistleblower weren't disclosed.

Under the program, tipsters who report corporate fraud or other misconduct are eligible if they give the SEC information that leads to an enforcement action resulting in more than $1 million in penalties. They can receive from 10 to 30 percent of the money the SEC recovers from a company or person.

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