HD: Since last year, if you live in Texas.
The same thing is being proposed in IL.
The problem is people don't understand that a small business doesn't necessarily make a lot on what seems like a big gross. Also, most people don't realize that for a small business you might not be able to write off a large expense in a given year, but may have to depreciate or capitalize it over time.
For example, you may buy an xray machine that cost 25K, but you don't get to deduct the 25K, instead you have to calculate the cost over a 20 yr period even though the cost was incurred in one year. If gross receipts get taxed you might be running an actual deficit even though the return looks like you are making a big profit.
In the end, increased taxes on people means business is less inclined to expand and hire new people. The large pools of investment capital begin to look elsewhere for opportunity. IOW, less growth, fewer jobs.
The most insidious part of bambi's plan is the "tax credits" to those that don't pay any taxes, or pay very little. The "tax credits" are actually money that's taken from one group and given to another. IOW, redistribution of wealth. Just imagine what the govt. passing out other peoples money is going to do long term.
Fairfax County VA has a gross receipts tax that I pay on every dollar of sales. No deductions for cost of goods sold, etc.
Fortunately it’s well under 1%, but it still is objectionable.
If your business has a 10% margin, a 1% gross receipts tax is the same as a 10% income tax.
Jack