We mentioned this morning the various budget-balancing scenarios that Council seems to be considering. Isaiah Thompson at City Paper reports on a coalition that's pushing an additional idea -- a hike in the gross receipts portion of the business tax, to mid-nineties levels.
The idea is this: the gross receipts tax is a tax on net sales – rather than revenue/income.
Because large companies can easily hide or move their income, the reasoning goes, the gross receipts tax is the only way to tax the operations of major, national retailers in the area.
One of the strongest arguments against raising this tax is that, because it taxes sales regardless of income, it can tax a business that isn't turning a profit. To answer this challenge, the Coalition is proposing that all businesses with receipts under $500,000 be exempted.