To Tax or Not To Tax

Would the cost of eliminating the gross receipts tax be too much for the city of Los Angeles to bear? Or would elimination of the tax actually help the local economy by generating more business and jobs and ultimately increase revenue to the city?

A consulting group, hired by the city, concluded that getting rid of the gross receipts tax would cost Los Angeles $400 million, and that the increase in jobs and business activity would not make up for the loss,according to this story in the Los Angeles Daily News.

Los Angeles City Councilman Eric Garcetti, a candidate for mayor, says he supports elimination of the gross receipts tax. Other mayoral candidates have not yet weighed in on the issue.