
The Hidden Tax
"The BNRT’s far-reaching ramifications have not been fully addressed and should be carefully analyzed and considered by the Governor and the Legislature…. Instituting a new tax system and phasing out an old one needs careful oversight. There may be unforeseen consequences and dramatic shifts in the economy that could call into question the proposed pace of transition."
The above quotes are not from critics of the Commission on the 21st Century Economy report but from the majority authors of the report itself. That is something less than a ringing endorsement, and not useful for either bumper stickers or campaign ads. And it is probably the most forthright statement in the report regarding the Business Net Receipts Tax (BNRT). This tax reaches every transaction in the economy so everyone pays but it is incorporated into the price of the product or service, so consumers do not know how much tax they are paying. It is a tax designed for the benefit of government because it can raise large amounts of revenue at low rates all while hiding itself from the public.
The Commission does recommend that a technical body be convened at least… Read More