Corporate Tax Increases

It is still believed the committee is leaning toward selecting a Commercial Activity Tax, which is a pure gross receipts tax, as the basis for implementing a new business tax. The debate here is how much the legislature wants to raise. House Democratic leadership wants to raise business taxes by $3.4 billion per biennium. Senate Democratic leadership wants to raise business taxes by $2 billion. We want all chambers and businesses to understand that the Commercial Activity Tax is being discussed ‘in addition to’ current business income taxes, not ‘in lieu of.’ As we learn more we will share information on any proposed new taxes.

(The Tax Foundation Article) This article contains the LRO’s short-run model results as well as the proposed gross receipts tax estimations. It will reveal the broader evidence of the detrimental effect of the GRT that we have, for years, fought so hard against.