4 Economic Problems with Gross Receipts Tax

  • Gross receipt taxes do not correlate to the amount of government services a firm uses
  • Gross receipt taxes do not correlate to a firm’s cash flow
  • Gross receipt taxes push certain industries into high effective tax rates
  • Gross receipt taxes reduce competitiveness, fairness, and transparency

Tax Foundation | Gross Receipts Taxes: Lessons from Previous State Experiences