An article published by Bloomberg Law Tax discusses the possible reemergence of Gross Receipts Taxes in states due to the COVID-19 pandemic. Gross receipts taxes are becoming attractive because they rely on calculations of total commercial activity rather than profitability, said Jordan M. Goodman. Jordan continued to say that, "During the COVID-19 recession you are going to see a lot of states looking for alternative sources of revenue including the gross receipts tax, particularly because businesses are going to be unprofitable for a while."Read More
He told Bloomberg Law Tax that gross receipts taxes would be popular over the next three years because they wipe away calculations related to income and shield states from unpredictability in the federal tax code. “With a gross receipts tax, you don’t have to worry about what’s happening at the federal level,” Jordan said. “They are simply solidifying their source of revenue, which is what the states should be focusing on.”
The full article, “States May Consider Gross Receipts Taxes to Cope with Virus Impact,” was written by Michael J. Bologna and published by Bloomberg Law Tax on April 24, 2020 for its subscribers.
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