4%? How do they plan on staying in business? Seriously. A tax on gross can be exponential in its effects.
Well, 4.7%. He is a distributor of commodity products, things like medical gloves and such. He has a geat distribution network. It is close to 'factory to the floor' but there is tremendous pressure on price. 2.3% off the top will put him out of business. My business solutions save my clients time and money, but they have to have money to save.
But you are right, a 2.3% tax on revenues can easily take 40% of profits. This will kill the medical devices industry.
0bama is the Destroyer of the Economy.