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Charlotte Amalie
Wednesday, September 27, 2023
HomeNewsArchivesGross Receipts Tax Doesn't Affect Innovative Bottom Line

Gross Receipts Tax Doesn't Affect Innovative Bottom Line

Back Talk: Warren Mosler writes the Source to point out a question regarding Innovative Telephone's renewed EDC benefits.
Regarding your article, "Senators Looking at EDC Secret Deal With Innovative," when a utility is guaranteed a certain profit, the likes of gross receipts taxes very simply and very legally get passed on to our utility bills don't reduce the profits of the utility. Only the income tax rate matters, assuming the profit guarantee is only for pre tax profits.
Warren Mosler
St. Croix

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