Today, The Heartland Institute is releasing a Research & Commentary package addressing gross receipts taxes.
A gross receipts tax imposes a levy on all business transactions, regardless of a firm’s profits or losses. In an economy increasingly shifting away from manufacturing and industrial goods in favor of services, supporters of the gross receipts tax maintain it is an efficient, reliable, and broad-based way to derive revenue from businesses.
But articles and studies in this Research & Commentary package tell a different story:
- Gross receipts taxes do not provide a reliable source of state revenue;
- Gross receipts taxes dramatically increase the cost of consumer goods;
- Economic growth and job creation are negatively impacted by such a formula; and
- New and/or small businesses are hurt the most.
I encourage you to review the collected materials in this Research & Commentary. You can download the full document by clicking the link below.