5 Problems with the Gross Receipts Tax in the Buckeye State

Ohio has a .26% tax on business gross receipts above $1 million.

The Tax Foundation study lays out 5 reasons why the Ohio gross receipts tax is no bueno:

• Creates tax pyramiding
• Creates grossly inequitable effective tax rates across industries and businesses
• Even though the OH gross receipts tax was a tax cut, it is “difficult to attribute any positive economic outcomes”
• Results in extensive litigation
• A gross receipts tax is “inefficient and inequitable form of taxation long since superseded by more modern revenue tools”

Tax Foundation  | Ohio’s Commercial Activity Tax: A Reappraisal