Campaign renewed to cut Delaware business tax
Delaware does not impose a state or local sales tax, but does impose a gross receipts tax. If you sell goods (tangible or otherwise) or provide services in this State, then you know what I am talking about. The taxes are filed either monthly or quarterly with the Division of Revenue, depending on the type of business you actually transact.
Don’t you wish they would just go away?
Rep. Deborah Hudson, R- Fairthorne, would like to do just that. Hudson is making her second attempt at reducing the DE gross receipts tax today in Dover. Her plan would cut the tax rates by 25 percent, and eventually eliminate them all together.
Should it gain enough support, the legislation would not likely affect many small businesses since the first $600,000 in sales are exempt from the tax. According to the News Journal, 37,000 of the 45,000 business in Delaware don’t pay the tax now. Big businesses like Daimler-Chrysler would more than welcome the change though. Their officials are quick to point out
the tax makes Delaware a less competitive place to do business.
While that may be true, there are still are many good reasons that Delaware is the #1 business destination in the nation.
There’s nothing like putting a little more distance between yourself and second place though.
Why not cut back the business tax or better yet, repeal it all together?
In order for a proposal like this to succeed, local business interests must throw their hat in the ring and support it.
Contact your legislator so you can contact them and tell them you support the measure.
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