GOP control of the Senate will prevent big tax increases from coming out of Washington. But this episode of What’s Ahead warns that state and local governments are ravenous for revenue. One new exaction they are eying would hammer both businesses and stocks: the gross receipts tax.
This levy is a direct tax on a firm’s revenue and doesn’t allow any deductions for expenses. It would be especially hurtful to small businesses, whose profit margins are often thin. It would also be a formidable barrier for startups, making it that much more difficult for them to achieve a profit. Business profits will be reduced, meaning less money for expansion and for boosting wages.
New Jersey, home to facilities that process trades for stock exchanges like Nasdaq, is considering a cousin to the gross receipts tax, that is, a levy on securities transactions. The exchanges are now looking to leave the state. Texas and other states beckon.
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,
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Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy.
Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It.
Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional).
Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate.
In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.